TEWKSBURY, Mass.—Market Basket CEO Arthur T. Demoulas has been removed from the company, the board of directors announced on Wednesday.
Both sides went to mediation last week in Delaware to try and end the struggle for control of the Massachusetts-based supermarket chain, but failed to resolve their issues.
"Despite extensive efforts by the board and Demoulas to come to terms, the mediation was not successful. The Market Basket board late yesterday voted unanimously to remove Arthur T. Demoulas as president and CEO of Market Basket. The board has filed an action in the Delaware Court of Chancery in connection with the removal," board chair Jay Hachigian said in a statement.
The announcement revealed the first details of last week's closed door meetings, which were held in Delaware where Market Basket is incorporated.
"The board met with Mr. Demoulas on Sept. 3 in a confidential mediation in Delaware before former Vice Chancellor Joseph Slights III and continued the mediation via video conference on Sept. 9. The parties agreed not to comment publicly during that time," Hachigian said.
Market Basket has 95 stores in the United States, located in New Hampshire, Massachusetts, Maine, and Rhode Island. Massachusetts has the largest number of stores, with 57, followed by New Hampshire with 33, and Maine with 3 locations. The supermarket chain has been in business for over 100 years.
