Everything You Need to Know About Market Basket

By David Bloch | 08/28/2014
  1. A deal to sell DeMoulas Super Markets Inc. to Arthur T. Demoulas’ side of the family was reached last night around 11 PM after weeks of negotiations.
  2. The employee walkout and customer boycott lasted 41 days. Arthur T. was fired 66 days ago.
  3. Arthur T. and his relatives purchased the remaining 50.5% of the shares from Arthur S. and his sisters – giving them full control and ownership of the company. The deal is reportedly worth over $1.5 billion.
  4. The $1.5 billion transaction is backed by $550 million from a private equity firm, and a mortgage loan secured by the company’s properties. The remaining amount will be covered by cash payments.
  5. The deal will probably take months to finalize. Until then, Arthur. T will share control of day-to-day operations with the co-CEO’s who replaced him when he was fired – James Gooch and Felicia Thornton.
  6. The sale prevented the board from enacting a plan to close 61 of 71 stores and fire thousands of workers.
  7. The employee walkout and customer boycott were incredibly successful, having accomplished all of their goals. The remarkable efforts of the non-unionized Market Basket workers are without recent comparison in America.
  8. As of this morning employees are back at work. It might take several weeks for shelves to be fully re-stocked at all stores.
  9. The company is in significant debt, having lost millions of dollars and damaged relationships with suppliers during the crisis. The company’s – and workers’ – futures are up in the air. Only time will tell if Market Basket can replicate their past successes.
His one message to customers: "It's time to come home."

His one message to customers: “It’s time to come home.”

Sources: The Boston Globe, Boston.com, Boston Business Journal