Support NeoGAF

[Wads]

This family must be a bunch of idiots. Reinstate the guy and let things get back to normal. Instead just driving the value of the company down more and more.

 

[Treechopper]

I can't wait to see this movie in theaters two years from now.

In all seriousness, I hope this is resolved soon so all those people can get back to work. Meanwhile, this is interesting to follow!

 

[ActStriker]

So how are the shares divided between the family members? I assume it is just more than two, can Author T get some family members to change to his side? Sounds like his side has 49.5% of the Share and Author S family supports have 50.5% of the shares.

http://www.bostonglobe.com/2014/07/...rket-basket/gePggarMOky55aIdQ7VAaO/story.html

 

[Edwardo]

I tried going to Aldi's but their freezer was full of expired ice cream.

 

[Fuchsdh]

Honest, yet brutal.

Probably. This does appear to be a case where the employee's fears are well-founded; the move to deliver money to shareholders before dumping the guy reads as a pretty clear telegraphing that the new showrunners are stressing short-term profits and suggests the merger rumors weren't unfounded.

Hopefully the employees can stand strong and fight them on this. They're damned lucky to have those benefits and I can't fault them for trying hard to keep them. If the business is profitable there's no excuse.

This is why family should never do business with family, it only leads to destroying of families.

They did an interesting Freakonomics episode on that. They raise a good common-sense point: how likely is it that the best people for the job are directly related to you?

Family-owned businesses seem like they have a nautral size limit, after which the chances of bad relations destroying the business skyrocket.

 

[Sho_Nuff82]

I work a minute down the road from their Andover distribution center. Yeah, I wouldn't try to break those picket lines.

On Monday the cops and the news were out there, it was pretty surreal.

 

[teruterubozu]

The Market Basket in Maine never went on strike and worked right through. They just opened their first store here just a few months ago so none of the workers are familiar with the family conflict.

 

[BlueTsunami]

My mom travels 30 minutes out to MB in Fitchburg from Worcester. The cost in gas bites into the savings but the thats balanced by how quick you can check out and how bright and neat the stores are.

And there's this gem...

http://www.youtube.com/watch?v=L4UUrQw_6No&sns=em

protest anthem for Market Basket. Touches on the struggle of north easterners in a post market basket world.

 

[Timedog]

Fuck those idiots who just want to be paid a decent wage!

 

[Lombaszko]

My wife would usually go to MB on Saturday mornings but she's been letting me do the shopping since the shutdown and I've been going to Shaw's, which is actually closer to our house.

I gotta say, since they got bought up last year their new parent company has been doing a great job. No more rewards cards and employees have seemed a lot nicer. Some of the changes were probably a direct result of wanting to compete with Market Basket, so I hope MB sticks around in some fashion just so there is competition.

 

[Bread]

i miss my $4 rotisserie chicken

come back market basket i need protein!

 

[Edwardo]

According to many of my friends who work at the stores, they just laid off all of the part time employees.

 

[ActStriker]

According to many of my friends who work at the stores, they just laid off all of the part time employees.

http://www.bostonglobe.com/business...ulas-stores/X7uFc01iMBMFxoWeWXh38O/story.html

Some Market Basket stores are eliminating part-time employees’ hours because of the steep drop-off in business that has followed the stand-off between rival factions of the Demoulas family, which owns the supermarket chain.

Two store managers said Thursday that they are cutting hours for part-time workers to zero next week.

In a statement, a spokesman for the company’s co-chief executives, James Gooch and Felicia Thornton, said, “It is not their wish that anyone be laid off. Toward that end, they have directed store directors to receive deliveries and stock their shelves. Company practice has always been that store directors are responsible for determining appropriate staffing levels in their stores.”

The cutbacks so far appear to affect mostly part-time employees, but they typically make up the vast majority of workers at the chain’s 71 stores. Managers at six Market Basket supermarkets in Massachusetts and New Hampshire said they cut employee hours after receiving a directive from Thornton to adjust work schedules to reflect the lower volume of sales.

New Hampshire Employment Security says on its website that Demoulas workers may be eligible for unemployment if their hours are cut or they get laid off. Some Demoulas part-timers have taken jobs at other supermarkets, including Hannaford Bros. Co.

The Belgium-based parent of Hannaford Bros. Co. is offering to buy part or all of Market Basket, which competes with it in markets throughout New England, said people familiar with the negotiations. The offer is competing with the bid of Arthur T. Demoulas, the ousted president, who is trying to buy out his relatives and regain control of the company.

Arthur T. Demoulas was fired in June by the company’s board of directors, which is controlled by his cousin and rival, Arthur S. Demoulas. Arthur T. has not offered to sell the 49.5 percent owned by his side of the family.

Market Basket’s board of directors has only said it is evaluating several offers. A spokesman for Hannaford could not be reached for comment.

The competition could make it more difficult for Arthur T. to regain control of the business, especially given his strained relationship with Arthur S. and other relatives who have rebuffed his efforts to reach a sale agreement and repair its operations.

 

[massoluk]

According to many of my friends who work at the stores, they just laid off all of the part time employees.

http://www.wcvb.com/news/report-another-supermarket-makes-bid-for-market-basket/27349512#!bx01Gx

Was curious so I looked it up on Google News. No more hours for part timers, got serious bidder from rival company as well to complicate thing.

edit: too late :|

 

[Sanjuro]

I didn't even know Market Basket was a thing until a couple years ago. This whole story has been pretty out there.

 

[KHarvey16]

Few press releases over the weekend. Friday saw a press release from the majority shareholders to have Arthur T. return to serve in a non-CEO role, along with his management team, while negotiations continue. Basically it sounds like they want him to come in and appease the protesting customers and associates, allowing them to sell the company to someone else at a reasonable price. The Arthur T. side responded an hour later:

Five weeks ago these Board members voted to fire Arthur T. Demoulas and banned him from company property. Since that time, the company has spiraled downward and Arthur T. has worked feverishly to purchase the company. On three separate occasions since that time, including as recently as yesterday, Arthur T. has offered in writing and otherwise to try to bring back his entire management team to work to stabilize the company. Each offer was rejected.

It is disingenuous to issue a press release at 5:30 on a Friday, from the “Independent Directors” all of whom were appointed by Arthur S. Demoulas’ side of the family, announcing that they have invited him to rejoin the company but not as CEO. This is an attempt to have him stabilize the company, while they consider selling it to another bidder. This is far too serious a situation for these games and attempts at window dressing. It is a serious issue that deserves a serious solution. Market Basket’s Associates, customers, vendors and communities deserve better than that. Arthur T. Demoulas has provided a serious proposal which should be accepted.

On Saturday another release from the majority shareholders was made public:

"Twenty five thousand associates and two million customers shouldn’t be held hostage for a business deal between shareholders. We all need to get back to work, stock our shelves and allow our customers to return to shop. Clearly, each side has sets of proposals to solve the impasse – there are enough proposed solutions out there to begin a serious negotiation. Business negotiations should not prevent our associates from earning a living or our customers from buying groceries. It is wrong to hold everyone hostage to gain a negotiation advantage. Let’s end the hostage-taking and get together to work at finding common ground. We are ready meet, anytime, anywhere,” said the independent directors.

It's a pretty shameless attempt to spin the situation and no one responded to it.

Then, from the majority shareholders on Saturday night:

The Class A Shareholders, including trustees with fiduciary duties, have offered to provide financing for Arthur T. Demoulas’ purchase if he does not have enough cash to close. The terms included an interest bearing loan secured by collateral that has an acceptable payment schedule. We have been advised that it would be irresponsible to make a loan without collateral, interest or a payment schedule, similar to terms that would apply to any traditional bank loan.

Our proposal would permit Arthur T. Demoulas to return to work immediately to work collaboratively to stabilize the business on terms proposed by the independent directors of the Market Basket Board if the Class B Shareholders would commit to buy our interests. Our proposal, made last week and reiterated throughout this week, has not been accepted.

Arthur T. Demoulas’ conduct to date, including his most recent public statement, continues to undermine Market Basket and the Class B Shareholders have not indicated a willingness to engage in good faith discussions for a sale. The Class B Shareholders have given us no choice at this time but to consider all available options to sell our equity in order to protect the interests of all Market Basket stakeholders.

We have given Arthur T. Demoulas and the other Class B Shareholders many opportunities to end the current controversy. We continue to be prepared to sell our interests in Market Basket for the price originally proposed by Arthur T. Demoulas.

After, this from the Arthur T. camp on Sunday night:

It was Arthur T. Demoulas’ hope and intent that this matter not be negotiated in the press. He does not believe that a war of press releases and statements is helpful to this very serious situation. However, he cannot allow false information to have a negative impact on Market Basket Associates and other stakeholders and therefore I will clarify the following on his behalf.

1. Discussions continued today with representatives of the Board and their advisors.

2. Arthur T. Demoulas reaffirms his desire and good faith for completing the purchase of the 50.5% of DSM. Those terms include an offer at their asking price, at a valuation determined pre-crisis.

3. Thus far, his offers have been rejected, not on the basis of price, but with counterproposals that have been laden with onerous terms that are far beyond comparable transactions.

4. It is Arthur T. Demoulas’ hope that the Arthur S. Demoulas family will come to the table to reach a final agreement on reasonable terms before it is too late to save this company.

5. He further hopes that the next time either side is communicating in the press, it is to announce that his bid has been accepted and that he and his whole team are going in to stabilize the company.

Judging by this sequence of releases, it's probably safe to bet that the offer made by a competitor (Hannaford's parent company) to buy Market Basket earlier in the week was heavily discounted due to the situation they find themselves in. Now they're scrambling.

 

[TheFatOne]

Thanks Kharvey was planning on updating this a little later today. This is a really fascinating situation. I can't verify this, but I was told that Market Basket is losing millions of dollars a day right now. I don't think anyone even knows what to do, and from the sound of everything it looks like the people in charge have no clue either.

I didn't even know Market Basket was a thing until a couple years ago. This whole story has been pretty out there.

How did you not know about market basket sanjuro? West MA? The market basket that's closest to my house has a pretty solid bakery. Their donuts and muffins are my kryptonite.

 

[BronsonLee]

Holy shit is Arthur T throwing shade right now. He not only saw right through their stupid plan, he blew them up for it.

Arthur S be fuckin' up. Hope sticking it to your family is worth losing your entire company over!

 

[AlimNassor]

Even those retail workers are expendable, losing that many is not easy to replace. It costs money and time and unless you literally plan to hire anyone off the streets no matter how lazy and stupid, you got a problem.

 

[A Human Becoming]

Thanks for the update KHarvey. I am starting to worry the company will go under if they don't reach an agreement soon.

I can't verify this, but I was told that Market Basket is losing millions of dollars a day right now.

The relatively small one in Rochester, New Hampshire is losing $191k a day according to a store manager. I've heard the company is losing $13 million a day.

 

[BronsonLee]

Thanks for the update KHarvey. I am starting to worry the company will go under if they don't reach an agreement soon.

Basically from what I'm reading here, Arthur S needs to stop being a bitch and bring Arthur T back, or they won't be able to course correct in time to sell.

He back-channeled to get control of the company back, but he pushed too hard and now the court of public opinion is real close to burying him.

 

[TheFatOne]

Thanks for the update KHarvey. I am starting to worry the company will go under if they don't reach an agreement soon.

I'm also worried about this. Market basket has the best prices on food where I live. I hope they resolve this, but right now it's not looking good.

Basically from what I'm reading here, Arthur S needs to stop being a bitch and bring Arthur T back, or they won't be able to course correct in time to sell.

He back-channeled to get control of the company back, but he pushed too hard and now the court of public opinion is real close to burying him.

The court of public opinion has already buried him.

 

[Dicer]

This shit needs to be sorted, MB is right down the hill and so much cheaper than the alternatives...Hannaford is shit, Shaws is shit Stop and Shop is too far away, and also shit.

 

[TheFatOne]

Another quick thing Market Basket has started to cut back hours on their employees drastically. Makes sense since no one is shopping at Market Basket, but it does not look good for the board. Small anecdote there is a Stop and Shop right next to a Market Basket where I live, and holy shit is the Stop and Shop packed. It's insane. I have never seen a grocery store that busy. They must be killing it at that store.

 

[Sanjuro]

How did you not know about market basket sanjuro? West MA? The market basket that's closest to my house has a pretty solid bakery. Their donuts and muffins are my kryptonite.

It's more of a northern Massachusetts thing. South coast and Cape Cod only have two that I can think of off hand, both opening in the last few years.

It was Almacs, then Shaws, now Stop and Shop dominating the area.

 

[BronsonLee]

The court of public opinion has already buried him.

He can climb out of that grave right now, though. If the company gets murked, then it's all for nothing.

Small anecdote their is a Stop and Shop right next to a Market Basket where I live, and holy shit is the Stop and Shop packed. It's insane. I have never seen a grocery store that busy. They must be killing it at that store.

Yeah, I bet other grocery stores near Market Basket are fucking cackling. They'll probably keep a good amount of business even after this stuff subsides.

 

[Lombaszko]

Another quick thing Market Basket has started to cut back hours on their employees drastically. Makes sense since no one is shopping at Market Basket, but it does not look good for the board. Small anecdote there is a Stop and Shop right next to a Market Basket where I live, and holy shit is the Stop and Shop packed. It's insane. I have never seen a grocery store that busy. They must be killing it at that store.

Ha! Are you near Reading too? I've never seen that parking lot so full!

 

[TheFatOne]

It's more of a northern Massachusetts thing. South coast and Cape Cod only have two that I can think of off hand, both opening in the last few years.

It was Almacs, then Shaws, now Stop and Shop dominating the area.

Ahh makes sense. It's always interesting seeing different stores when you go around mass. I had never heard of the big y until I started going to school out in western mass.

 

[A Human Becoming]

Another quick thing Market Basket has started to cut back hours on their employees drastically. Makes sense since no one is shopping at Market Basket, but it does not look good for the board. Small anecdote there is a Stop and Shop right next to a Market Basket where I live, and holy shit is the Stop and Shop packed. It's insane. I have never seen a grocery store that busy. They must be killing it at that store.

The two Hannafords in Rochester, NH seem to be killing it. If they hadn't built the second one I imagine they would have lost business to Walmart (which has crap produce and questionable meat).

I wish MB would unionize from all this, but there's been no sign of it.

 

[Tybolt]

I want this shit sorted out so the supermarket I normally go to will be less busy.

 

[Sanjuro]

Just heard on the news that the workers have until Friday to return to work, or they are canned.

 

[hom3land]

It's more of a northern Massachusetts thing. South coast and Cape Cod only have two that I can think of off hand, both opening in the last few years.

It was Almacs, then Shaws, now Stop and Shop dominating the area.

My mom drives from Kingston to go over the bridge for her MB fix. She was so pissed when they pulled out of building one in Plymouth.

 

[Man God]

It's completely disrupted my sister's shopping routine, which is annoying because I cook for her and her kids on the reg. The Stop and Shop near her is garbage, The Shaws is hard to get to and even worse and she's nowhere near a Trader Joes or a Hannafords.

This whole affair is already straight out of a movie and I hope it gets one some day...maybe with a Hollywood ending to boot! The media in MA is completely one sided on this, it's laughable to think that this company will ever recover if the employees don't get their way. We're getting stories of Scholarships getting canceled now!

My mom drives from Kingston to go over the bridge for her MB fix. She was so pissed when they pulled out of building one in Plymouth.

A Plymouth one would be SO GOOD. I sometimes have business in RI and go to the New Bedford one on my way home to Marshfield.

 

[Dicer]

 

[ActStriker]

This whole affair is already straight out of a movie and I hope it gets one some day...maybe with a Hollywood ending to boot! The media in MA is completely one sided on this, it's laughable to think that this company will ever recover if the employees don't get their way. We're getting stories of Scholarships getting canceled now!

What did you expect when the Arthur S. has basically been unseen or unheard from the public aside from press releases here and there? Basically the only thing they can really cover or show is the protests

 

[Patryn]

Just heard on the news that the workers have until Friday to return to work, or they are canned.

Isn't this the third ultimatum? Didn't they say they were going to fire everyone the day that they had those job fairs or whatever?

 

[BlueTsunami]

Isn't this the third ultimatum? Didn't they say they were going to fire everyone the day that they had those job fairs or whatever?

They fired higher level managers but have not said anything about full time worker till now.

 

[KHarvey16]

The "independent board member's" statement released late Monday gives a little insight into the depth of their clueless-ness regarding the PR disaster they've got on their hands:

“Three days ago, we offered a solution to the current standoff. We pledged to put everything on the table. All we asked for was an end to the standoff by letting associates get back to work and customers get back to shopping.

“We have a series of difficult business decisions to work out. However, there is no reason to continue to hold the 25,000 Associates, 2 million shoppers and our local economies hostage to an ongoing business negotiation between shareholders.

"We are available to resolve this standoff anytime and anywhere. All it takes is a ‘Yes.’ ‘Yes’ to getting Associates back to work. ‘Yes’ to letting people get back to shopping. And ‘Yes’ to sitting down and working out a long-term solution to the business issues that confront us.

“It is time to get everyone back to work. We must end this zero sum game and act in the best interests of our Associates, customers – and in the end, our company. We are ready to meet. It’s time.”

It was reported yesterday that some employees received another warning about being let go, and it read:

“We are writing one final time, to invite you to return to work and perform your job obligations,” the letter says. “If your role requires that you primarily work at the company’s headquarters or distribution facilities, you must return to such role ready to fulfill your duties no later than Friday, August 15, 2014. Alternatively, if your job is based in the field, you are required to return to work and contact either of us prior to August 15 to review the work you are performing. Should you choose to ignore either of these directives, the company will consider you to have abandoned your job, thereby ending your employment with the company.”

The current leadership responded by confirming it:

“Since July 17, approximately 200 associates who work at headquarters and the distribution centers have failed to report to work, despite several company communications requesting they do so. The company has not taken any action in response to their absence, but is left with no choice but to make this last request. The company will of course follow all applicable laws should these associates choose to abandon their positions.”

So, it seems like the Friday deadline is only for those in HQ and in some distribution centers.

 

[BlueTsunami]

Seems like they're trying to mitigate the bleeding somewhat by slowly bringing back production and business on their terms instead of pressing the nuke button and filling all the positions. Still a rock and a hard place. Should be interesting to see what happens now.

Also, its interesting to note, the general opinion is against unionizing by the workers. Why unionize when you had a CEO that worked for you and the business? Authur S. really took a dump on the brand and for what? To maximize on a business that was humming along just fine.

 

[ActStriker]

The Globe obtained partial transcripts for board meetings over the years.

http://www.bostonglobe.com/business...ud-raged/0dc9gC2d7tNlk9oTH4QIuK/igraphic.html

 

[kess]

94-Year-Old Market Basket Bagger Gets $7,000 Check From Grateful Sources

A 94-year-old part-time Market Basket bagger who was one of many workers to have hours cut received a paycheck from unexpected sources Friday.

Arthur St. John, who’s been working at the store the grocery store chain’s Stratham location in New Hampshire for 22 years, received a check for $7,166 from an online campaign by customers determined to help him keep paying his bills, Seacoast Online reported.

 

[Stumpokapow]

Customers would rather pay employees to not work than pay the store to buy the things the store is selling.

 

[KHarvey16]

The Globe obtained partial transcripts for board meetings over the years.

http://www.bostonglobe.com/business...ud-raged/0dc9gC2d7tNlk9oTH4QIuK/igraphic.html

Fascinating stuff. I love the second one about the employee bonuses.

 

[Dr Prob]

Shocking news: Replacement driver and protesters not really getting along

TEWKSBURY, Mass. (WHDH) - Friday afternoon a temporary truck driver at Market Basket headquarters in Tewksbury allegedly attacked a group of protesters near his truck.

Witnesses say he was carrying a hammer and targeted two people.

“He got out of the truck with a hammer down by his side, not cocked, down by his side wrapped up in a rag. Very aggressive, he went after two of our people directly. Before he could swing the hammer, before he could even raise it, Tewksbury police tackled him down to the ground, took the hammer from him and subdued him," one witness said.

Having been tackled and subdued by Tewksbury police myself, I can confirm that they are indeed very good at doing that.

 

[TheFatOne]

http://www.boston.com/business/news...-reach-deal/YHVqrKp65XS3DBzJd2PulI/story.html

The shareholders of Market Basket have agreed to a deal that will see former CEO Arthur T. Demoulas and his family take complete ownership of the grocery chain, according to a source familiar with negotiations. The deal has been fully executed by both sides, according to the source.

Arthur T. and his family, which previously owned 49.5 percent of the company, reportedly offered more than $1.5 billion for the 50.5 percent owned by rival family members, including Arthur S. Demoulas. The Boston Globe has reported that more than $500 million of that figure will come in the form of financing from a private equity firm.

The agreement was arrived at Wednesday after weeks of negotiations that appeared to be nearing their end in the last week. Arthur T. announced his and his family’s bid to buy the chain in late July, a month after he was fired by the company’s board.

The deal likely spells the end of the summer’s standoff over the chain’s future. It also serves as the latest, if not final, bookend in the decades-old saga between the rival shareholder factions.

According to the source, as part of the agreement, Arthur T. would have authority over Market Basket’s operations while working in a consultant role. He will work to stabilize the chain while the sale is finalized, which could take weeks or even months.

The chain is in need of stabilizing. For nearly six weeks, Employee protests and a customer boycott have served as the backdrop at the company during the negotiations at the company’s highest levels.

Update. It seems like Arthur T finally was able to make a deal, and become the majority owner of market basket. Will update this again tomorrow with more info.

 

[KHarvey16]

http://www.boston.com/business/news...-reach-deal/YHVqrKp65XS3DBzJd2PulI/story.html


Update. It seems like Arthur T finally was able to make a deal, and become the majority owner of market basket. Will update this again tomorrow with more info.

Awesome! Good timing too, I have to go grocery shopping tomorrow.

 

[Man God]

Finally. It was really hurting my menu planning when cooking for my nephews.

 

[zero shift]

This is way cooperatives should replace most large private businesses.

 

[ElRenoRaven]

Man I'd love to be a fly on the wall during all this. It really is a great case of how to totally screw your business over. Hopefully he'll be able to turn it all back around once he officially has control.

 

[Aaron]

The nightmare of going to shitty supermarkets is finally over.