Categories: BusinessU.S. News

Market Basket sells majority stake to Arthur T. Demoulas

The Market Basket supermarket chain has agreed to sell to a majority stake to former boss Arthur T. Demoulas, ending a months-long dispute.

In announcing his purchase, Arthur T. Demoulas told workers, who had gone on strike in July to protest against his firing: “You are simply the best.”

The 70-plus stores belonging to the chain are mostly located in the northeastern US.

It was estimated the company was losing $70 million a day during the strike.

On August 27, Arthur T. Demoulas announced that he had reached an agreement to purchase the 50.5% of the company he did not control from a rival faction controlled by his cousin, Arthur S. Demoulas, for $1.5 billion.

“Words cannot express how much I appreciate each and every one of you,” Arthur T. Demoulas said while addressing workers outside the company’s Massachusetts headquarters on August 28.

The company employs roughly 25,000 people in the area.

Market Basket has been sold to Arthur T. Demoulas for more than $1.5 billion

The saga began in June, when Arthur T. Demoulas was ousted as CEO of the company by a rival faction of his family, which controlled 50.5% of the firm.

The dispute was said to have been over a series of investments Arthur T. Demoulas had authorized, which led to large losses and smaller payouts for Market Basket’s shareholders.

However, the dispute simmered for a month until the new management fired eight workers who had protested againstArthur T. Demoulas’s demise in July.

That is when a campaign led by Market Basket workers and customers to “Save Market Basket” began to gather steam.

Workers went on strike, truck drivers refused to deliver fresh produce and meat, and shoppers boycotted stores, leading to empty shelves and the near-collapse of the firm.

Efforts on social media also paid off, with an anonymously-run Facebook page to save the Market Basket gathering over 90,000 likes and the hashtag, #MarketBasket, trending often on Twitter.

This brought national and international attention to the plight of the workers, stunning many in the industry both because the workers were not unionized and because they were campaigning for an almost-unheard of thing: the reinstatement of their boss.

Although negotiations between Arthur T. Demoulas and his cousin, Arthur S. Demoulas, continued through July, tensions were further agitated when Market Basket’s new co-chief executives announced a job fair in early August to hire replacement workers.

Now, those workers are breathing a sigh of relief.

Many tweeted pictures of newly-stocked shelves at several stores where meat counters and fresh produce areas had been empty for the past few weeks.

The question now is whether the chain, which has been essentially not in operation for two months, can recover from the essential collapse of its operations.

Boycotting customers said they would return to shop at the store immediately, as Market Basket is known for its lower-than-average prices.

-0vYmy7tIPs -K1I6me6wzQ
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

4 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago