Market Basket CEO blasts company’s board members over firing of long-time execs

The firing of two long-time Market Basket executives by the company’s board of directors on Tuesday was “among the worst decisions that could be made,” the grocery store chain’s CEO said in a statement Tuesday evening.

Earlier in the day, Board Member Steven Collins called the Tewksbury-based company’s operations manager, Joe Schmidt, and grocery supervisor, Tom Gordon, to inform them of the board’s decision to remove them from their positions, Market Basket CEO Arthur T. Demoulas said. The chief executive plans to “use all efforts to reverse this heartless and unwarranted decision.”

“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,” his statement reads.

Schmidt and Gordon could not be reached for comment Tuesday evening.Demoulas, Schmidt and Gordon have all been on paid leave since late May at the behest of the board, which cited concerns that the three executives were planning a work stoppage in the hopes of protecting Demoulas from being fired.

The CEO responded by quickly denying the board’s claims, calling it a facade for a “hostile takeover” of the grocery store chain. Schmidt and Gordon also told news outlets at the time that they expected to soon lose their jobs.

On Tuesday, the board of directors reiterated accusations that Schmidt and Gordon were encouraging Market Basket employees to engage in workplace disruptions despite being asked to stop, The Boston Globe reported. The board also claimed the two executives told their colleagues they could lose their bonuses in the event of Demoulas’ firing, the newspaper wrote.

In turn, the CEO used his statement to criticize three of the board’s four members by name and again characterized their actions as a part of an effort to forcibly gain control of the company.

“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,” his statement reads. “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.”

Collins, Hachigian and Keyes previously accused Demoulas of “improperly trying to line up his children to succeed him, as well as not providing certain financial information or access to top executives to the board” — claims which Demoulas and his allies have repeatedly denied, the Globe reported. The board’s fourth member has consistently voted in the CEO’s favor.

• Read more: Longtime Market Basket execs say they expect to be sacked amid company’s turmoil

Absent from Demoulas rebuff was mention of his three sisters, who, according to the Globe, are fighting with their brother over control of the roughly $8 billion-a-year grocery store chain.

Each sister owns 20% of Market Basket’s shares, giving them majority control while they act as a unit, the newspaper reported. Another 28% of the company is owned by their brother, and the rest is owned by a trust benefitting their grandchildren.

Demoulas was previously fired from his position in 2014, but returned after Market Basket employees protested his ousting for two months. The backlash from the company’s workforce ultimately enabled the buying out of other Demoulas family members’ shares in Market Basket by the CEO and his sisters.