TEWKSBURY, Mass. — Arthur T. Demoulas remained chief executive officer of Demoulas Supermarkets when its board of directors on Thursday made no motion to remove him over the course of a 13-hour, court-ordered meeting.
"I am pleased with today's result. I hope to work constructively with the Board going forward. It is my desire to continue to look out for the best interests of or customers and employees," Demoulas said in a statement. "Together we have built a fine organization and I am extremely proud of you. Thanks to everybody for their tremendous outpouring of support."
The CEO of Demoulas, parent of the 72-store Market Basket chain, was believed to be in jeopardy after his cousin, Arthur S. Demoulas, gained control of its board last month and moved to fire the CEO. The move reactivated a longstanding feud between the cousins, who are descendants of Market Basket's founding brothers and have a history of skirmishes in court.
Family Feud: Demoulas Factions Fight for Control of Company
Arthur S. Demoulas, who recently regained control of the board, in court papers accused Arthur T. of reckless spending, self-dealing and not considering the board recommendations. The CEO in turn said Arthur S. would interfere with Market Basket's progress by raising prices, slowing capital spending and borrowing against the company to fund dividends for directors.
The dispute resulted in a court-ordered board meeting Thursday during which the issue of voting out the CEO was to be on the table. Thousands of Market Basket shoppers and employees rallied to support Arthur T. Demoulas, including hundreds who gathered outside an Andover, Mass., hotel early Thursday morning and waited until the meeting was adjourned around 10 p.m.
| Suggested Categories | More from Supermarketnews |
 |
|
|
|
