TEWKSBURY — Embattled Market Basket CEO Arthur T. Demoulas mentioned in a press release Tuesday Operations Director Joe Schmidt and Grocery Supervisor Tom Gordon, who had been every placed on go away in Could together with Demoulas, had been each fired.
In his assertion, Demoulas mentioned Market Basket board member Steven Collins known as Schmidt and Gordon Tuesday and knowledgeable them of the choice. The 2 had been amongst a number of Market Basket workers and executives who had been positioned on go away on the finish of Could amid allegations they and Demoulas had been planning a piece stoppage.
“In addition to being men of strong character, these are two of the brightest and best grocery store operators in the business, and their extraordinary work has been key to building this company and its culture. This is among the worst decisions that could be made by this board,” mentioned Demoulas in his assertion. “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.”
Demoulas went on to name Schmidt and Gordon “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,” Demoulas concluded.
The present company turmoil inside the jap New England grocery chain turned public on Could 28, when the board introduced Demoulas, Schmidt, Gordon, Demoulas’ brother-in-law Gerard Lewis, Demoulas’ son Telemachus and his daughter Madeline had been being positioned on administrative go away. The explanation given by the board was what they alleged was a plan by Demoulas and his allies within the firm to stage a piece stoppage akin to the saga of 2014, when Demoulas had been outright fired from his position as CEO.
Those that had been positioned on go away have denied the allegation of a piece stoppage, however the board additionally accused Demoulas of withholding key details about the corporate’s operations and funds, and of not partaking with the board on a succession plan.
Since then, not less than three different Market Basket workers, District Supervisor Paul Quigley and Operations Supervisors Adam Deschene and Esteban Alvarez, had been additionally positioned on go away over allegations they had been partaking in disruptive conduct inside the firm. The three spoke to The Solar earlier this month and mentioned they had been being punished for voicing considerations over Demoulas and the others being positioned on go away.
In a prolonged assertion Tuesday afternoon from the Market Basket board, they mentioned Schmidt and Gordon had been being fired for “insubordination, making false and derogatory remarks about the company and people associated with it, and inappropriate communications with colleagues.” The board claimed an investigation uncovered proof of a deliberate work disruption involving Schmidt and Gordon.
“Allegations that Schmidt and Gordon were encouraging a widespread work disruption were a basis for their suspensions. Such a disruption would echo the employee walkout and vendor and customer boycott of 2014 on behalf of Arthur T. Demoulas, the CEO who had been fired by the previous owner of the company, his cousin Arthur S. Demoulas. That disruption cost the company over a half billion dollars ended when Demoulas and his sisters bought the company,” mentioned the board in its assertion.
“Among other things, the investigation uncovered evidence that Schmidt and Gordon, following their suspensions, both directly encouraged employees to slow down and disrupt operations at Market Basket, including by telling them to defy their supervisors,” the assertion continued. “Referring to Demoulas’s sisters, Market Basket’s majority shareholders, Gordon told at least one associate, ‘the three girls are evil.’ 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 went on to say that, regardless of warnings, Schmidt defied directions to not talk with different workers whereas he was beneath suspension, they usually claimed Schmidt straight threatened workers.
“One of Schmidt’s direct reports told colleagues he remained in contact with Schmidt following Schmidt’s suspension. That same employee, himself a supervisor, told a subordinate, ‘You’ve got a wife and kids. I want to make sure you know to stay on the right side of this.’ The subordinate understood that statement to be a direct threat,” mentioned the board.
“Schmidt also reportedly told colleagues – falsely – that if Demoulas were removed as CEO they would lose their bonuses and profit sharing. Schmidt has acknowledged to investigators that he had no factual basis for that statement,” the board assertion continued. “The investigators learned that in the weeks leading up to his suspension, Gordon reportedly told associates to spread the word throughout the company that the majority shareholders – Demoulas’s sisters – were going to remove Demoulas as CEO, and that Gordon would quit if that happened.”
The board additionally pointed to Gordon’s visits to shops in Rochester and Salem, New Hampshire, throughout his suspension once they had been barred from any Market Basket property. Gordon and Schmidt instructed The Solar in June they’d visited these shops to congratulate two longtime managers who had been retiring.
The investigation in 2025 yielded proof that Schmidt and Gordon had been planning a piece disruption to indicate assist for suspended CEO Arthur T. Demoulas, the board mentioned.
“Since their suspensions, Gordon and Schmidt have spent weeks waging an unauthorized media campaign disparaging Market Basket and its board, including through multiple interviews that they acknowledged to investigators were not authorized by the company. During these interviews, Gordon and Schmidt both made numerous false statements about the company and its’ leadership,” mentioned the board.
The board referenced statements Schmidt and Gordon made to The Solar beforehand, wherein Schmidt claimed he was led out of the headquarters by six armed guards.
“As examples, Schmidt falsely told the Lowell Sun that board members were accompanied by six armed security guards when he was suspended in May. Schmidt has acknowledged to investigators that he had no factual basis for the statement, which was in fact false,” mentioned the board. “Schmidt additionally falsely instructed the Boston Globe that Market Basket with out Demoulas had grow to be an organization of ‘distrust, disrespect and fear.’ Schmidt additionally made up a narrative concerning the Board trying to give shares of the corporate to outsiders and likewise promising large dividend funds to the shareholders in an interview with Dan Rea on July 14.
“Schmidt further depicted Demoulas’s failure to allow the Board any say in succession of him as CEO as a ‘coup,’ despite knowing that Demoulas’s role as CEO is subordinate to the company’s Board of Directors and that Demoulas is only a minority shareholder in the company only owns 28.4 percent of the company,” the board assertion later continued. “While on paid suspension, Gordon openly likewise publicly disparaged the Market Basket Board of Directors, including Board Chair Jay K. Hachigian, telling the Lowell Sun, ‘Jay does not do his job.’ He also told NBC10 that ‘It’s a shame that this great company is being tossed into this turmoil over what seems like a succession plan.’”
The board known as these examples of “false statements” by Schmidt and Gordon.
“In sum, the Board of Directors suspended with pay each of Schmidt and Gordon in order to conduct an investigation into credible allegations of improper conduct,” mentioned the board. “Before the investigation was even into its first week, Mr. Schmidt and Mr. Gordon initiated a media campaign to disparage the company, the Board of Directors and the owners and pressured associates – effectively doing in full sight what the Board of Directors suspected before their suspension. They had to know that their behavior (after multiple warnings) would lead to this result.”
Schmidt and Gordon didn’t instantly touch upon their firings.
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