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Market Basket Hires Search Firm: Source
TEWKSBURY, Mass. — The board of directors of Demoulas Supermarkets last week approved a $250 million dividend, and moved to establish a line of credit and hire executive search firm that could lead to new management for the parent of Market Basket stores, a source briefed on the meeting told SN.
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TEWKSBURY, Mass. — The board of directors of Demoulas Supermarkets last week approved a $250 million dividend, and moved to establish a line of credit and hire executive search firm that could lead to new management for the parent of Market Basket stores, a source briefed on the meeting told SN.
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The actions represent the latest moves since control of the company’s board shifted from members loyal to Market Basket Chief Executive Officer Arthur T. Demoulas to a rival faction headed by his cousin, Arthur S. Demoulas. A motion to remove Arthur T. Demoulas as CEO was on the agenda during the company’s July board meeting but was not voted on amid an outpouring of employee support. Arthur T. Demoulas has argued against a dividend and against taking on debt, according to court documents filed this summer related to the longstanding dispute between the Demoulas cousins.
Read more: Demoulas CEO Survives Board Challenge
The source said the board approved the engagement of the executive search firm Spencer Stuart, but was unclear as to the intent. “It could be to clean house from the top down,” the source said.
The dividend, which will be paid from the company’s internal resources, will go to the nine members of the Demoulas board, including Arthur T. Demoulas.
