NORTH ANDOVER — The Market Basket Board of Directors on Tuesday afternoon fired Joe Schmidt and Tom Gordon, the company’s operations and grocery directors who had been suspended since May 29, for insubordination. The 90-store company’s embattled CEO, Arthur T. Demoulas, aka Artie T., also suspended by the board since May 28, called the board’s action heartless and part of a preplanned coup that is destructive to the company’s culture. This latest fight at a company that earned almost $8 billion last year is the second Demoulas family feud in a little more than a decade. On Tuesday, the board stated that Schmidt and Gordon had encouraged Market Basket employees to defy their supervisors and disrupt operations. “Gordon also reportedly told several Market Basket colleagues that they should ‘choose sides wisely,’ meaning that if they did not side with Demoulas there would be adverse repercussions,” the board stated in a prepared statement. The board also stated that the directors’ actions violated directives the board had issued them upon their suspensions on May 28 for allegedly organizing a work stoppage in support of Artie T. The board suspended Demoulas claiming he had denied them basic budgetary oversight, and access to employees. Demoulas says these are baseless claims and reflect a failure of the board, installed to represent his three sisters, to understand the company’s culture. On Tuesday afternoon, Demoulas called out the board members after Stephen Collins telephoned Schmidt and Gordon and fired them. “This is among the worst decisions that could be made by this board,” Demoulas said. “Steven Collins of Exeter Capital doesn’t understand this company’s culture. Nor do his fellow board members Jay Hachigian of Gunderson Dettmer and Michael Keyes of Intercontinental Real Estate. “To them, Tom, after 50 years with the company, and Joe after 39 years, are easily cast aside. They are just collateral damage in this pre-planned coup.” On May 28, the board, representing the majority shareholders, three Demoulas family sisters, Frances, Glorianne, and Caren, suspended CEO Demoulas and his children Telemachus and Madeline, as well as Schmidt and Gordon. Each sister owns a 20% share in the company, giving them a 60% majority ownership, compared to Arthur T. Demoulas’s 28% stake. More recently, on July 4, the board suspended district supervisor Paul Quigley, of Haverhill, a 44-year Market Basket employee, claiming he had been disruptive at headquarters in Tewksbury. The board released no information on Quigley’s status. The board has ordered an investigation into Demoulas’ alleged failures as a CEO. That investigation is being carried out by the Boston law firm Quinn Emanuel. No information was available on when the results of that investigation will be announced. The board states that Market Basket has terminated Schmidt and Gordon for making false and derogatory remarks about the company and people associated with it, and for inappropriate communications with colleagues. In June, Schmidt and Gordon visited longtime store managers in New Hampshire upon their retirements, wishing them well and thanking them for their years of service. The board says an investigation following the supension of Schmidt and Gordon uncovered alleged statements by them that were critical of the sisters. “Referring to Demoulas’s sisters, Market Basket’s majority shareholders, Gordon told at least one associate, ‘the three girls are evil,’” the board’s statement reads. Schmidt and Gordon will respond to their firings at a press conference Wednesday morning in Reading at the local Market Basket. Arthur T. Demoulas said he will try to undo the actions taken by the board against Schmidt and Gordon, calling them “part of the heart and soul of the company and key executives in its immense success to date.” “They are men of integrity and honor and belong on the Market Basket team, and we will use all efforts to reverse this heartless and unwarranted decision,” said Arthur T. Demoulas.
NORTH ANDOVER — The Market Basket Board of Directors on Tuesday afternoon fired Joe Schmidt and Tom Gordon, the company’s operations and grocery directors who had been suspended since May 28, for insubordination.
The 90-store company’s embattled CEO, Arthur T. Demoulas, aka Artie T., also suspended by the board since May 28, called the board’s action heartless and part of a preplanned coup that is destructive to the company’s culture.
This latest fight at a company that earned almost $8 billion last year is the second Demoulas family feud in a little more than a decade.
On Tuesday, the board stated that Schmidt and Gordon had encouraged Market Basket employees to defy their supervisors and disrupt operations.
“Gordon also reportedly told several Market Basket colleagues that they should ‘choose sides wisely,’ meaning that if they did not side with Demoulas there would be adverse repercussions,” the board stated in a prepared statement.
The board also stated that the directors’ actions violated directives the board had issued them upon their suspensions on May 28 for allegedly organizing a work stoppage in support of Artie T.
The board suspended Demoulas claiming he had denied them basic budgetary oversight, and access to employees.
Demoulas says these are baseless claims and reflect a failure of the board, installed to represent his three sisters, to understand the company’s culture.
On Tuesday afternoon, Demoulas called out the board members after Stephen Collins telephoned Schmidt and Gordon and fired them.
“This is among the worst decisions that could be made by this board,” Demoulas said. “Steven Collins of Exeter Capital doesn’t understand this company’s culture. Nor do his fellow board members Jay Hachigian of Gunderson Dettmer and Michael Keyes of Intercontinental Real Estate.
“To them, Tom, after 50 years with the company, and Joe after 39 years, are easily cast aside. They are just collateral damage in this pre-planned coup.”
On May 28, the board, representing the majority shareholders, three Demoulas family sisters, Frances, Glorianne, and Caren, suspended CEO Demoulas and his children Telemachus and Madeline, as well as Schmidt and Gordon.
Each sister owns a 20% share in the company, giving them a 60% majority ownership, compared to Arthur T. Demoulas’s 28% stake.
More recently, on July 4, the board suspended district supervisor Paul Quigley, of Haverhill, a 44-year Market Basket employee, claiming he had been disruptive at headquarters in Tewksbury.
The board released no information on Quigley’s status.
The board has ordered an investigation into Demoulas’ alleged failures as a CEO. That investigation is being carried out by the Boston law firm Quinn Emanuel.
No information was available on when the results of that investigation will be announced.
The board states that Market Basket has terminated Schmidt and Gordon for making false and derogatory remarks about the company and people associated with it, and for inappropriate communications with colleagues.
In June, Schmidt and Gordon visited longtime store managers in New Hampshire upon their retirements, wishing them well and thanking them for their years of service.
The board says an investigation following the supension of Schmidt and Gordon uncovered alleged statements by them that were critical of the sisters.
“Referring to Demoulas’s sisters, Market Basket’s majority shareholders, Gordon told at least one associate, ‘the three girls are evil,’” the board’s statement reads.
Schmidt and Gordon will respond to their firings at a press conference Wednesday morning in Reading at the local Market Basket.
Arthur T. Demoulas said he will try to undo the actions taken by the board against Schmidt and Gordon, calling them “part of the heart and soul of the company and key executives in its immense success to date.”
“They are men of integrity and honor and belong on the Market Basket team, and we will use all efforts to reverse this heartless and unwarranted decision,” said Arthur T. Demoulas.