Report: Market Basket CEO faces termination by family-run board

Boston -- A report by the Boston Globe revealed that the fate of Market Basket CEO Arthur T. Demoulas lies in the hands of the grocery chain’s board of directors, as members are posted to fire Demoulas at a meeting of the board next week.

A longtime family feud has split the board in two, and both sides of the family-owned Demoulas Super Markets Inc. will face off in a meeting on Thursday, July 18, to determine whether or not Demoulas will be removed from office.

According to the Globe, the latest dispute in the 20-year battle involves accusations by a first cousin – who leads the controlling group on the board — that Demoulas steamrolled directors and spent money recklessly.

Demoulas, 58, has disputed the allegations, and has fired back with his own assertions that his familial opponents have pushed for the company to borrow heavily in order to finance payouts to shareholders of more than $1.5 billion.

The matter is being heard in Suffolk Superior Court.

 

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