Mike Demoulas Market Basket Case

In 1917, Greek immigrants Athanasios and Efrosini Demoulas opened DeMoulas Market, a grocery store in the Acre neighborhood of Lowell, Massachusetts that specializes in fresh lamb. Demoulas market “Market basket”, as it became known as, became more than just a small mom and pop shop, it became a modern supermarket chain. Currently with 77 stores, Market basket is a chain of supermarkets, that are located across the new england area. Even though it is an industrialized chain of supermarkets, it still maintains its roots as a family owned business. Many customers and employees alike, say that market feels like an extended family. If you go to any market basket you will see many employees name tags, which declare that they have been their ten
Demoulas filed a second suit, this time alleging that Mike Demoulas had diverted assets from the jointly-owned family company, Demoulas Super Markets, to ones controlled by him and his children, including Market Basket. After an eighty-four-day bench trial, judge Maria Lopez found in favor of the plaintiffs. Lopez awarded George's family about $206 million for dividends on stock that had been improperly diverted and 50.5% of the company. She also ordered that all of the assets of Market Basket and the other companies controlled by Mike Demoulas and his family be transferred to Demoulas Super Markets and that Mike Demoulas be removed as president of the company. In 1999, when the court order took effect, he resigned as president of the
Demoulas due to her displeasure with her brother-in-law, Arthur S. Demoulas, after he attempted to gain control of the trust that controlled her daughter's shares. This gave Arthur T. a majority vote on the Board of Directors. In 2008, Arthur T. Demoulas was named President and CEO of DeMoulas Super Markets, Inc. During his tenure as CEO, sales grew from $3 billion a year to $4 billion, and the number of employees grew from 14,000 to