Recapping the leadership crisis engulfing Market Basket

The New England grocer recently dismissed a board member who supported its suspended CEO and won a court order barring two fired executives from its stores, local news outlets reported.

What happened

Market Basket has removed the last member of its board of directors who supported the retailer’s suspended CEO, as a battle over the New England grocery chain’s leadership continues to unfold, according to Boston-area media reports.

The ousted director, Bill Shea, said he was fired earlier in August because he had attempted to learn details about why the company decided to place its chief executive, Arthur T. Demoulas, on paid administrative leave in May over allegations that he was planning a work stoppage, WBZ reported on Monday. An attorney representing the board, which is controlled by Demoulas’ sisters, said Shea was cut because he had placed loyalty to Demoulas over a “fiduciary responsibility” he has to the company and its customers, the TV station reported.

Why it matters

Also this month, a judge granted a request by Market Basket for a restraining order preventing two former longtime executives, Joseph Schmidt and Tom Gordon, from entering the chain’s stores or other properties, according to WCVB. Market Basket said in a court filing posted online by WPRI that it sought the order because the executives, whom it fired in July, had entered stores and spoken with employees in violation of instructions it issued.

Schmidt and Gordon were let go in connection with what Market Basket said were false statements about the grocer and for improperly communicating with workers, WMUR reported. They had both been previously suspended in May, when Demoulas and other workers were placed on leave amid claims by Market Basket that they were acting to disrupt company operations, according to WCVB.

Market Basket said in the complaint that Schmidt, its former director of operations, and Gordon, who had served as director of grocery, had told associates that they would be reinstated to their positions and that workers “who cooperated with Market Basket management in their absence will be targeted for retribution.”

This news brief is based on reporting published by Grocery Dive on 2025-08-22. The original report is linked below.