Animosity Continues in Market Basket Fight

Written by Tony Schinella

Another weekend and another round of press statements and counter statements from members of the Demoulas family in the fight for control of the Market Basket chain of grocery stores in Massachusetts, New Hampshire, and Maine.

Late last night, the Class A shareholders, members of Arthur S. Demoulas’ family, issued a statement blaming ousted CEO Arthur T. Demoulas for the work stoppage stating that he was continue to “undermine Market Basket and the Class B shareholders have not indicated a willingness to engage in good faith discussions for a sale.” The family stated that its terms included an interest-bearing loan secured by collateral with an acceptable payment schedule as well as a condition that he return to work immediately to stabilize the business.

“Our proposal made last week and reiterated throughout this week, has not been accepted,” the statement said. “The Class B Shareholders have given us no choice at this time but to consider all available options to sell our equity in order to protect the interests of all Market Basket stakeholders. We have given Arthur T. Demoulas and the other Class B shareholders many opportunities to end the current controversy. We continue to be prepared to sell our interest in Market Basket for the price originally proposed by Arthur T. Demoulas.”

It was the first time the other side of the family had made a public statement about the situation, preferring instead to issue comments through the new CEOs, board members, and a public relations firm.

However, on Sunday night, Arthur T. Demoulas’ spokesperson offered counter comments in an effort to “clarify” the “false information” that was previously released that would have “a negative impact on Market Basket associations and other stakeholders.”

According to Justine Griffin, managing director of Rasky Baerlein Strategic Communications, discussions about a potential sale continued today and Arthur T. Demoulas “reaffirms his desire and good faith for completing the purchase of the 50.5% of DSM” at the pre-crisis asking price and valuation.

“Thus far, his offers have been rejected, not on the basis of price, but with counterproposals that have been laden with onerous terms that are far beyond comparable transactions,” she noted. “It is Arthur T. Demoulas’ hope that the Arthur S. Demoulas family will come to the table to reach a final agreement on reasonable terms before it is too late to save this company. He further hopes that the next time either side is communicating in the press, it is to announce that his bid has been accepted and that he and his whole team are going in to stabilize the company.”

Photo: Arthur S. Demoulas, left, and Arthur T. Demoulas. File photos.