Demoulas Market Basket Case
Demoulas Market Basket Family Feud
Demoulas Market Basket Demoulas Market Basket, a New England grocery chain commenced operations in 1917 when Greek immigrant Athanasio Demoulas and his wife Efrosino opened a store in Lowell, Massachusetts (WCVB, 2015). Their two sons, Mike and George, purchased the store for $15,000 from them modernizing and expanding Market Basket into a successful regional grocery chain. This success was jeopardized by a family feud that intensified from a public relations nightmare into an absolute business crisis for the Demoulas brand.
Issue
The source of the Demoulas family dispute lies in the actions of Mike who made a promise to George that upon his death he would watch over his surviving family members. When Mike diverted approximately $1 billion of company assets without approval from George’s heirs’ legal action ensued. A judgment in favor of Arthur, George’s son, resulted in controlling ownership of …show more content…
Instead of taking care of the business all of which would take care of the family they sided against one another in a no win situation that almost destroyed not only the business their fathers’ built but their families as well. The two cousins should have put their differences aside being businessmen and negotiated the sale of the supermarket chain privately instead of waging a public battle that resulted in a no win situation for either family faction. Demoulas took a hit to its brand as a result of the ugly business that occurred during the struggle for control and power that in the end resulted in Arthur selling his share to Artie. My advice would have been to settle privately without issue as the long-term reputation as well as business standing of Demoulas as a supermarket giant is at stake for all parties involved especially their families’
Demoulas Market Basket Demoulas Market Basket, a New England grocery chain commenced operations in 1917 when Greek immigrant Athanasio Demoulas and his wife Efrosino opened a store in Lowell, Massachusetts (WCVB, 2015). Their two sons, Mike and George, purchased the store for $15,000 from them modernizing and expanding Market Basket into a successful regional grocery chain. This success was jeopardized by a family feud that intensified from a public relations nightmare into an absolute business crisis for the Demoulas brand.
Issue
The source of the Demoulas family dispute lies in the actions of Mike who made a promise to George that upon his death he would watch over his surviving family members. When Mike diverted approximately $1 billion of company assets without approval from George’s heirs’ legal action ensued. A judgment in favor of Arthur, George’s son, resulted in controlling ownership of …show more content…
Instead of taking care of the business all of which would take care of the family they sided against one another in a no win situation that almost destroyed not only the business their fathers’ built but their families as well. The two cousins should have put their differences aside being businessmen and negotiated the sale of the supermarket chain privately instead of waging a public battle that resulted in a no win situation for either family faction. Demoulas took a hit to its brand as a result of the ugly business that occurred during the struggle for control and power that in the end resulted in Arthur selling his share to Artie. My advice would have been to settle privately without issue as the long-term reputation as well as business standing of Demoulas as a supermarket giant is at stake for all parties involved especially their families’