TEWKSBURY — The Executive Committee of the Market Basket Board of Directors announced Wednesday that CEO and minority shareholder Arthur T. Demoulas has been placed on paid administrative leave, effective immediately, pending an internal investigation into his conduct.
According to the May 28, 2025 press release issued via Business Wire, the investigation centers on allegations that Demoulas planned a work stoppage to disrupt operations in retaliation for board directives aimed at increasing corporate oversight and access to senior employees. The board also cited concerns over his alleged refusal to participate in a formal succession plan, instead asserting that he could appoint his children as successors unilaterally.
“At a time of great economic uncertainty for many households, such work stoppages would significantly harm and broadly disrupt Market Basket’s stores and operations across New England, as well as its valued customers, associates, and vendors,” the board said in its statement.
Demoulas will continue to receive his full salary and company distributions while on leave. He was not the only employee placed on leave, though the company has not named the others. In the interim, Market Basket will rely on its existing management team to oversee operations at its 90 stores across the region.
“Market Basket stores provide a place that our local communities consistently count on for both their livelihoods and daily needs—the Board has a responsibility to safeguard the company’s effective operations now and well into the future,” Market Basket Director Steven J. Collins said
The board stated that employees will see no changes to their jobs, pay, or benefits—including the company’s profit-sharing plan—and that the business’s ownership structure will remain the same.
