Board of Directors of Market Basket Takes Steps to Safeguard Company, Suspends CEO and Initiates Investigation

The Executive Committee of the Market Basket Board of Directors today placed CEO and minority shareholder Arthur T. Demoulas and several other employees on paid administrative leave, effective immediately while an investigation is conducted into the CEO’s conduct. The investigation will include a review of credible allegations that Mr. Demoulas began to plan a disruption of the business and operations of Market Basket with a work stoppage. The Executive Committee believes that Mr. Demoulas and others have taken these steps as improper retaliation for the Board’s directives requiring the CEO to work with the Board regarding the most basic corporate oversight and to provide the Board access to key employees. Mr. Demoulas has also resisted an appropriate succession plan for Market Basket, asserting that he has the unilateral right to appoint his children to succeed him without any consideration of the view of the Board or the majority owners of Market Basket.

At a time of great economic uncertainty for many households, such work stoppages would significantly harm and broadly disrupt Market Basket’s stores and operations across New England, as well as its valued customers, associates, and vendors.

“Market Basket stores provide a place that our local communities consistently count on for both their livelihoods and daily needs—the Board has a responsibility to safeguard the company’s effective operations now and well into the future,” said Steven J. Collins, Director of Market Basket.

While on leave, Mr. Demoulas will continue to be paid his full salary and share in all company distributions. During this time, the Board will rely on the existing dedicated management team at Market Basket to ensure that the operations of the 90 stores will be uninterrupted and maintain the quality, experience, and superb service that customers expect and enjoy.

There will be no changes for the company’s dedicated associates in their jobs, salaries and benefits, including the company’s profit-sharing plan, and the ownership of the business will not change. For shoppers, Market Basket will continue to provide its customers superior products and service at prices they have come to expect.

Mr. Collins emphasized that Market Basket takes pride in operating with unwavering integrity that aligns with high standards, treating the company’s associates with respect, and consistently delivering “More For Your Dollar” value to its customers.

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