Methuen Mayor Urges Market Basket CEO to Return to His Post

Methuen Mayor David P. Beauregard Jr. has made a public call for the return of CEO Arthur T. Demoulas at Market Basket. Demoulas has been on leave for approximately two months.

Beauregard's plea comes after two longtime Market Basket executives were fired during the week of July 21.

In a letter sent to Demoulas Super Markets, Inc., Beauregard said he wanted “whatever is happening behind closed doors” to end.

On Tuesday, July 22, Market Basket's board of directors told Joseph Schmidt, the supermarket chain's director of operations, and Tom Gordon, the grocery director, that they had been fired for making false and derogatory remarks about the company and people connected with it, as well as distributing "inappropriate communications" with colleagues.

According to a Boston 25 News report, Schmidt, an almost 40-year employee of the company, falsely told colleagues that if Arthur T. Demoulas was removed as CEO, workers would lose their bonuses and profit sharing. An investigation also highlighted comments Gordon, a 50-year employee, allegedly made about the Demoulas sisters. Francis, Glorianne, and Caren Demoulas, the sisters of Arthur T. Demoulas, are majority shareholders in Market Basket.

Schmidt and Gordon deny the allegations, arguing that a "pre-planned coup" overseen by the Demoulas sisters is taking place at the company.

Beauregard is concerned that the falling-out among members of the company's leadership could unravel Market Basket's accomplishments since walkouts and boycotts rattled the company more than 10 years ago.

“All of that is now at risk because of yet another round of boardroom drama, the same kind of power struggle that nearly brought this company to its knees in 2014,” Beauregard said to Boston 25 News. “On behalf of the City of Methuen, I'm calling on the Market Basket board to do the right thing: resolve this internal dispute and bring back Arthur T. Demoulas — before the damage becomes irreversible.”

Demoulas was put on paid administrative leave on May 28 amid an investigation into allegations he had been considering heading a work stoppage at Market Basket.