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Company files for legal action to prohibit dismissed executives from accessing company premises

Supermarket chain Market Basket seeks court-ordered restriction against ex-leaders Joe Schmidt and Tom Gordon.

Company files for court injunction to prohibit dismissed top officials from accessing company...
Company files for court injunction to prohibit dismissed top officials from accessing company premises

In the heart of Tewksbury, Massachusetts, the Market Basket supermarket chain is embroiled in a bitter family dispute for control of the $8 billion company. The suspended CEO, Arthur T. Demoulas, is fighting to regain control, while his cousins, including three Demoulas sisters who dominate the company’s board, have been removing his allies from the Board of Directors.

The recent suspensions have shaken the company, with Joseph Schmidt and Tom Gordon, two loyal executives to Demoulas, being fired on July 22. The board of directors accused Schmidt and Gordon of insubordination, making false and derogatory remarks, and inappropriate communications with colleagues. The duo has been accused of visiting 23 stores in recent days to intimidate employees and precipitate a work slowdown, employee walkout, and customer boycott.

However, a group of 28 workers expressed their dismay about the co-workers' allegations, stating there is no "culture of fear" at Market Basket. In contrast, Valerie Polito, an employee, alleged a culture of fear and hostility in a letter to the board last week. Four other workers joined Polito's allegations, claiming the board has been trying to intimidate them.

Schmidt, who was recently found "documented on video after hours breaking and entering at the Tewksbury headquarters," has refused to return the master key. The board has requested that Schmidt and Gordon stay away from Market Basket property and leave associates alone.

The dispute between Demoulas and the board of directors is over control of the company. A spokesperson for Demoulas called the company's allegations against Schmidt and Gordon "false" and "attacks on their integrity."

Mike Toole, the managing editor for the Boston news, is closely following the developments at Market Basket. Prior to his current role, Toole wrote and produced news and sports at WABC-TV in New York. He has worked in the WBZ-TV newsroom for more than 20 years.

The conflict is part of a longer history of power struggles within the family, notably including a 2014 standoff when Arthur T. Demoulas was ousted by his cousin, triggering employee protests and customer boycotts that led to significant financial losses.

The board has scheduled a meeting with Valerie Polito on August 21 to address her concerns. The outcome of this family battle for control may shape the future of Market Basket and its 30,000 employees and customers.

  1. The dispute over control of Market Basket, an $8 billion company located in Tewksbury, Massachusetts, has led to suspensions and the firing of loyal executives, such as Joseph Schmidt and Tom Gordon.
  2. The board of directors has accused Schmidt and Gordon of insubordination, making false and derogatory remarks, and inappropriate communications, but a group of 28 workers have expressed a lack of a "culture of fear" at Market Basket.
  3. Valerie Polito, an employee, alleges a culture of fear and hostility in a letter to the board, and four other workers have joined her allegations, claiming the board has been trying to intimidate them.
  4. Mike Toole, the managing editor for the Boston news, is closely following the developments at Market Basket, a conflict that is part of a longer history of power struggles within the family and may shape the future of the company, its employees, and customers.

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