I haven’t read much recapping the sinister history of the DeMoulas family feud involving hundreds of millions of dollars and more in Market Basket stock.
Arthur T. DeMoulas is seeking to get his job back after his cousin Arthur S. DeMoulas recently gained control of the board and had him removed.
Arthur T.’s father, Telemachus, and Arthur S.’s father either built the business themselves or turned their father’s small market in Lowell into a multi-million dollar chain. The two brothers each had 50% interest in the business.
Then one day Arthur S’s father died. This was years ago. 1970’s perhaps 60’s. A tragic event for the entire clan. He had a young family. The whole thing. Telemachus made sure his brother’s family was taken care of. After all, this was family.
But guess what? Remember the 50% interest Arthur S. father had? Well Telemachus and his brood didn’t see it that way. Hey, WTF, the guy wasn’t showing up for work, you expect him to get paid?
Now cut to the late 1980s and Arthur S. and his siblings are adults and educated and one day say, “Hey, what the hey?” Telemachus and his son Arthur T. said, “Hey, what the hey nothing. My side of the family gave you and your mother money and lots of it when we didn’t have to so you’re getting Jack shit. if you don’t like it sue us.”
And that’s what they did. The law suit lasted years with Arthur T.’s side ultimately getting slapped and slapped hard. The amount of money they owed Arthur S.’s side was astronomical. Plus the court ruled Arthur S.s. side owned 50% of the stock.
Arthur T (the guy who wants his job back) hired some of the usual suspects in the high powered lawyer game in Boston. One was Gary Crossen, a former assistant U.S. attorney and a star at a major law firm. Another was Richard K. Donahue of Lowell. He was a big Jack Kennedy guy and the former President and CEO of NIKE. You heard me right NIKE<
Now I don’t know how much they were paid, what incentives were offered, or if Arthur T. Demoulas gave them a slush fund for dirty tricks. But each of these fine gentlemen got disbarred for what they did trying to win this case. They were very lucky they weren’t indicted.
If you recall, Judge Maria Lopez was assigned to this case in Middlesex Superior Court. Arthur T.’s side, represented by Crossen and Donahue, believed she was bias against them so they duped her young and naive clerk into believing there was a job opportunity for him. A big one. They flew him to Halifax, Nova Scotia where they gave him a faux interview then wined and dined him.
Then they turned on the secret tape recorder (that’s why they flew him to Halifax, no state wiretapping laws broken) and started pumping him for info on Lopez. He agreed with a few things and said a few things, nothing big, but enough for Crossen and Donahue to come back to him later and blackmail him if he didn’t sign an affidavit helpful in getting Lopez removed.
At this point the young clerk was smart enough to get a lawyer and bring this to the FBI.
Why would the lawyers do that for Arthur T.? Their outstanding careers and reputations were ruined.
Let me tell you a criminal lawyer trade situation. A drug dealer charged with trafficking cocaine and facing serious time. He goes to a lawyer for representation. The lawyer says his usual fee is $25,000 for something like that The drug dealer says, “no, I’m going to pay you $75,000. in cash and here it is. Will you represent me?”
What the drug dealer is saying, “If you represent me you better win or else. I’m given you more than enough money for you to spread around and keep for yourself. Just make sure I walk. I don’t handle customer service problems well. Remember that.”
The honest lawyer doesn’t take the case.
Now we have Arthur T. successfully throwing huge sums of money around resulting in lazy media types and communistic objections from pandering politicians carrying Arthur T.’s water.
How many people lost their job today because of Arthur T. ? But then perhaps he budgeted for this and is taking care of them if you know what I mean?
Anyway, let this movie be another example of the incestuous lazy Boston media that is more than willing to parrot what anyone on the list of insiders tells them. Like Larry Rasky.
Arthur T. DeMoulas is channeling P.T. Barnum and using media and the most obtuse politicians to fool people into believing he’s the most wonderful person ever and because of it his cousin Arthur S. doesn’t deserve the legal rights, privileges, and protections, every other property owner (stock in a close corporation) in this country receives. A sucker born every day. (And most end up working in Boston media)
Only 3 words left to say: Stop and Shop
Much higher prices on everything than MB.
is a unionized workforce. As retail workers they have health insurance coverage, pensions and are paid above minimum wage. I’ll shop there over MB.
I will certainly consider it when shopping. Still, it looks like MB employees are relatively well-treated, and if the Arthur S faction executes a Bainish looting of the company as feared, those employees will be screwed.
That’s my only realistic option if I join the MB boycott.
At least not as of the debate over the Employee Free Choice Act 5 years ago.
So, if I have this right …
The guy who tried to do the right thing got killed in court, and used bad tactics along the way, and is now using PR and political influence to change his situation.
If we assume the court acted rationally, isn’t this just another family business gone awry? Should employees really risk their fragile livelihoods trying to right the wrong? WBUR reports some have been fired for doing so.
I mean, I’m not unsympathetic … but I’m just not comfortable with a business/family fight spilling over into the public arena. The public arena has enough problems. Maybe Arthur T. should be courting investors to open a competing business.
Arthur T’s father screwed Arthur S’s clan. They started at 50/50 and after a number of years it went to like 90:10. That’s why “Market Basket” was added to the Demoulas Chain so he could siphon assets. All the growth mysteriously happened on one side of the company. That’s when the Arthur S side went to court.
Arthur T (and his cronies as trustees) also have some questionable dealings with the pension fund.
The big issue is that the Arthur S side was looking for some dividends from their stock (remember it’s closely held, so they can’t sell shares) and Arthur S refused. That’s probably the primary reason for ousting him.
I appreciate the recap of the long and dismal history of this utterly dysfunctional family. It reads like a Sue Grafton novel — next thing we know, the Hydrangeas next to some missing spouse or cousin’s long-abandoned house will be blooming in the wrong color.
I notice that the workers and their (non-existent) unions are minor players in this high drama. This time around, there are eight labor redshirts in the made-for-TV version (a “redshirt” is a character introduced into the plot in order to be killed later).
This is a food-fight among two hoity-toity rich white men and their respective entourages. The workers, as is so often the case, are getting the shaft.
Maybe if BOTH sides of the family had had to worry about an eighty or ninety percent estate tax, and a seventy percent capital gains tax, or perhaps an aggressive and feisty union, they might have had a little less motivation to keep urinating on each other — the rest of us (including the workers) would have gotten a much better deal along the way.
Instead of a battle for workers’ rights or working conditions, they’re being asked to fight their boss’s proxy battle. It just doesn’t sit right.
I don’t have a dog in the fight but it is a fight between a couple of right guys and their relatives. And Arthur T (right or wrong legally) is allowing hourly paid and low salaried workers to take a fall and get fired on his behalf. That’s just wrong. Arthur T is sitting on mounds of money. His future is secure. The men and women working paycheck to paycheck in the stores and warehouses shouldn’t be allowed to sacrifice their jobs for him. If Arthur T really was the man his PR says he is, his first statement would have been to the workers – “I appreciate your support. It means the world to me but do NOT place yourselves in the line of fire”.
And YES, if I was the UFCW, I’d have Organizers at every store signing up workers and attempting to organize the workers into a union that will stand up for them in this family fight.
Loved the Star Trek red shirts reference.
“right guys = rich guys” second cup of coffee needed.
they were getting into? There’s something a little condescending here, like they need to be told by a better how best to advocate for themselves.
Believing that Arthur T could have harnassed their support without them putting their jobs on the line in condescending. As I stated down thread:
and their real support of Arthur T. I think it’s heartfelt and admirable. I do have a problem with Arthur T allowing loyal employees to sacrifice on his behalf. New MB management has made it clear it will fire rank-and-file workers who fail to show up for work. Arthur T has the financial resources to carry this fight, many of those in the stores don’t.
I admire their courage and their resolve. Perhaps it’s the union rep gene in me that has a problem with workers putting their futures on the line in a fight where the financial deck is stacked against them. I fully expect to see MB on the market for sale to a large corporation sooner as opposed to later. In their shoes I’d be forming a union while supporting Arthur T.
…that the outpouring of support for Arthur T. on the part of the employees is anything other than enthusiastic and genuine. They easily could have stayed out of this fight, especially with their jobs on the line, but seem to know a good employer when they see one and are willing to stand up for him anyway. Here in the Merrimack Valley where MB is headquartered the coverage and the conversations around the community from what I can tell are very pro-employee and pro-Arthur T.
As I write this there is a rally in Tewksbury being attended by “thousands” of employees along with families and customers according to Channel 5. They are calling for a public boycott of MB until Arthur T. is reinstated.
Arthur T is a weak selfish man.
and their real support of Arthur T. I think it’s heartfelt and admirable. I do have a problem with Arthur T allowing loyal employees to sacrifice on his behalf. New MB management has made it clear it will fire rank-and-file workers who fail to show up for work. Arthur T has the financial resources to carry this fight, many of those in the stores don’t.
One thing. those getting fired have plenty of years in and they have good retirement package that is not affected by firing (like government jobs) Also, I wouldn’t be surprise if Arthur T. is throwing some cash around in envelopes to keep people happy. We’re talking Lowell here people.
I guess they prefer to stuff their payoffs into their bras in the big city. Lowell is SO backwards. Envelopes?
It doesn’t sound like Arthur T. has any say in the matter one way or the other at this point.
As in not making a public statement urging them to stay at work and fight this fight in other ways. Of course he can’t order them to work (or stop them from withholding services) however he could offer them alternatives to losing their jobs on his behalf.
Thousands of employees, along with families and customers, makes for a fine piece on Channel 5 today (“Workers and customers outraged! Details at 11:00p!”). No doubt makes the pre-roll add on the web video return more money to the owners, and probably even raises the brand awareness for Market Basket.
It does absolutely nothing to change the situation.
Arthur T. has already lost. It doesn’t sound to me as though he’s that great a friend of labor anyway. When the dust settles, the DeMoulas family will have grossed a boatload of money. It appears that lawyers for both sides (as well as PR people and all sorts of other “consultants”) will divert an interesting amount to their own bank accounts.
None of that will benefit workers, and none of it will save any jobs or provide any job security.
If Arthur T really cared about the workers, he would bankroll a unionization effort. Putting a successful and powerful union in place is the ONLY step that will make a difference, especially after the new owners flip Market Basket to whatever suitor(s) they currently have waiting in the wings.
Todya’s Manchester Union Leader carries a story about the firing of MB Executives loyal to Arthur T. Their firings are about internal structure and politics not about striking for Arthur T. But they were clearly fired because they are Arthur T’s people.
The story also details that warehouse workers are refusing to deliver to stores:
http://www.unionleader.com/article/20140720/NEWS02/140729927
Two points – MB workers clearly need protection from the new corporate management. Get thee to a union asap! And Mass DOT needs to be at MB warehouses checking for CDLs and other required licenses this morning as a matter of public safety.
… when you go full meta…
I thought the support wasn’t for Arthur T. for him as a person, but rather what he represented and championed, which was good benefits, profit sharing, etc. That and the fear that the current CEO situation is catalyst to the sale of the company to what would no doubt be larger and less receptive corporation.
Plus it’s still in the family.
Arthur T has had years and years to make his employees believe that his cousins are the most evil doers of all time.
Arthur T. seems to leave bodies in his wake. lawyers, emplyees.
And it was proved in court he cheated his aunt and cousins out of hundreds of millions of dollars.
John Gotti was loved in his neighborhood too.
The board picked two losers to be the new CEO. If my intention was a profitable company with success, I wouldn’t be hiring the guy who put Kmart, Sears, and RadioShaq into the ground pursuing short term share value over long term success. Or the lady who busted day care unions and took kinder care public. This team comes from the Bain school of mismanagement.
http://www.lowellsun.com/todaysheadlines/ci_26057051/big-task-ahead-new-market-basket-co-chiefs
in the statehouse in support of Arthur T…
someone please keep an eye on his campaign account… or given the way Arthur T operates with disbarred super lawyers, keep an eye on the dark money… oh wait
legislators would be wise to stay out of this
I honestly cant believe there is a protest in support of a billionaire who tried to steal half a company from his cousin… regardless of circumstances, who protests to get a billionaire his job back?
and why hasn’t Arthur S just promised all regular employees the same benefits etc?
…and Don Berwick has also issued a statement supporting employees.
It’s certainly possible Finegold has a relationship with the family since MB is HQ’d in his Senate district.