Tilton's Market Basket all but closed by employee protest

TILTON — At first glance, the entrance to the Market Basket grocery store here looked yesterday a little like a farmer's market. Canopies lined the long entrance road and people gathered under them sitting in chairs, drinking water, and in one case, cooking over a grill.

A closer looks revealed a grass roots demonstration by Market Basket employees and their families held at the encouragement of local store Director Mike LeClair to protested the ouster of former CEO Arthur T. Demoulas by the partially family-populated Market Basket Board of Directors.

Arthur T. is known throughout the company as a boss who cared for and took care of his employees. Many of those who were in Tilton yesterday are multi-year employees of Market Basket who said they trusted him with their livelihoods.

LeClair, a 25-year employee, said yesterday that the event that pushed him over the top occurred Tuesday when a delivery truck sent by new Market Basket Co-CEOs Felicia Thornton and Jim Gooch was accompanied by what he described as a military-type private security company and their statement to him that "trust and acceptance are earned and cannot be imposed."

"What did they think my employees were going to do," he said standing in front of the nearly empty store. "For the most part, they're a bunch of 18- and 19-year-old kids."

"Come get the perishable truck you sent that's at the dock, unloaded...It will rot before we unload it," he said in a Facebook post.

LeClair and his 330 employees are part of something rarely seen anymore in private sector America — a push back against what they see as a hostile take over of the company that employs them.

The story of the Demoulas family is a long and ofter contentious one. According to multiple sources including the Boston Globe, Funding Universe.com. and the New York Times, the company was founded by Athansios "Arthur" Demoulas in 1917 as a single family store.

The couple had two sons, Mike and George, who both worked at the store and bought out their parents in 1954. Both boys married and each had offspring named Arthur — Arthur T. from Mike's side and Arthur S. is from George's side of the family.

After George died suddenly while vacationing in Greece in 1971, Mike continued to operate the stores, gradually expanding to where he had two supermarket chains — the original one called DeMoulas Super Market and later Market Basket — created to circumvent a Massachusetts law that said one supermarket chain could only have a fixed number of liquor licenses.

George's widow, Evanthea and their children continued to own one half of the shares but Mike continued to operate the business. In 1980, Mike had George's widow removed from the Board of Directors creating a family rift that has continued to this day.

George's side of the family through Arthur S. contended that Mike's side of the family, represented by Arthur T., sold some of their side of the family's stock without their knowledge.

The Demoulas family hit the courts in 1990, litigating six lawsuits that stretched over seven years. The Boston Globe referred to the suits as the "the legal Full Employment Act."

The pivotal ruling came in 1994 when Massachusetts judge Nancy Lopez ruled that Arthur T.'s side of the family must return the stock valued at about a half a billion dollars to Arthur S.'s side, giving Arthur S.'s side 51-percent of the stock.

Both sides of the family have two seats on the Board of Directors with three seats belonging to non-family members. Arthur S. has as seat while Arthur T. does not.

On June 23, the board met and fired Arthur T. as CEO — even though he still personally controls about 14-percent of the Market Basket stock.

As word of Arthur T.'s dismissal traveled through the company this past weekend seven top executives demanded his return. They were fired by the new co-CEOs Felicia Thornton and Jim Gooch.

In the only statement issued by Arthur T. since his removal as CEO, on Monday he asked the new CEOs to rehire the fired employees.

Employees in stores throughout Massachusetts began holding demonstrations for the return of Arthur T. and the fired executives and yesterday that groundswell reached Tilton.

Every employee who was asked said they just wanted "Artie T." (Arthur T. Demoulas) returned to the company as it CEO.

Inside the store, the employees spelled "ARTIE T" in the empty produce sections using Styrofoam containers that normally would have been filled with vegetables.

With a few exceptions, the meat and produce cases were empty. Employees continued to stock the shelves with dry goods while they last and there were cashiers and floor clerks to assist the few customers who were shopping.

Only the goods that come from outside vendors are being stocked in Market Basket's shelves.

Joe Linehan is the front-end manager and has worked for Market Basket for 11 years. He was on the job yesterday and said his crew was doing what they need to do to take care of their customers.

He said normally on a Wednesday morning, there would be 10 cashiers working. Yesterday there was one.

Customers loyal to the store, LeClair, and his employees — most of whom are local people — brought coffee, water and food to the demonstrating employees yesterday. Many customers refused to enter the store and came to the parking lot only to show moral support.

Those who did enter the store were greeted by Market Basket employees who said they are still dedicated to giving their customers the best possible service they can.

Dennis Warner has worked at Market Basket for 31 years. As a former store manager, he is now legally blind but said when he tried to resign, the company found him a job he could do.

"I got a call," he said, saying it was Artie's T. top executives asking him what they could do to held keep him as an employees.

"He supported me when I needed it and now I'll support him," Warner said.

CAPTIONS: "ARTIE T. is spelled out in an empty fish case at Market Basket in Tilton.

Employees and their families demonstrate against the recent ouster of former Market Basket CEO ARthur T. Demoulas and a number of his top executives.