Two weeks after the board of Market Basket put Arthur T. Demoulas on paid leave, there’s still no one who has emerged as the leader in the absence of the popular chief executive.
Two workers in the chain’s Tewksbury-based headquarters who support Demoulas say the normally orderly world around the corporate office and distribution center has become confusing and stressful. One said the work environment has become more hostile now than 11 years ago when a different board, under the control of Demoulas’s cousin, fired Demoulas and prompted a six-week store walkout and boycott in support of bringing him back.
The workers, who are supporters of Demoulas, spoke to the Globe on the condition that they could remain anonymous because they fear for their jobs.
This time, Demoulas isn’t feuding with his cousin. Instead, the disagreement is with his three sisters, who worked with Demoulas to buy complete control of the company from their cousin in 2014 to resolve the walkout and save the business. The three sisters together own 60 percent of the company, likely valued in the billions of dollars, while Demoulas owns 28 percent, and the rest is in a trust for the grandchildren.
The board’s recently formed executive committee says Demoulas has been uncooperative on issues that include budgets, succession planning, and big capital decisions such as new store openings. The three-member committee put Demoulas and several of his lieutenants on paid leave on May 28, claiming rumors that Demoulas may have been planning a work stoppage to protect his job.
The board’s executive committee maintains there has been no disruption to Market Basket’s operations or stores as a result — essentially, business as usual.
Demoulas’s side, meanwhile, says there was no walkout planned and that the chief executive believes his sisters simply want more money out of the company now that the debt for the 2014 buyout has been paid off.
Among those put on paid leave while the board and law firm Quinn Emanuel conducts an investigation: top Demoulas lieutenants Joe Schmidt and Tom Gordon, plus two of Demoulas’s children, Madeline and Telemachus Demoulas.
At stake is the future of one of New England’s largest supermarket chains — the one with the most loyal following. The 90-store company, formally known as Demoulas Super Markets, has a well-earned reputation for low prices and customer service — along with the occasional family drama.
The Market Basket board has not yet put someone else in the chief executive spot, even on an interim basis, unlike during the 2014 boycott and walkout, in which two co-CEOs were appointed to take over after Demoulas was temporarily ousted. Mike Kettenbach, son of one of Demoulas’s sisters, who oversees deli, seafood, and prepared foods, sent out the May 28 memo announcing that Demoulas had been put on paid leave, on behalf of the board.
“It’s not the same company as it was,’’ said one of the anonymous workers, a longtime Market Basket employee. “There’s no one in charge. … You could see the stress on people’s faces.’’
Another Tewksbury employee said last week started with an unusual amount of yelling around the office. She said some coworkers left their desks because they were so upset, they were getting sick to their stomachs.
“I’ve been at Market Basket over a few decades [and] I have never experienced a hostile work environment like I’ve experienced,’’ she said.
Much of the disagreement appears to be about who reports to whom now, the two employees said, and the loyalties of the headquarters staff.
With the exception of several weeks during the tumultuous summer of 2014, Demoulas has led the company and been its public face since 2008, and worked at his father’s side before that. “Artie’’ is known for his regular store visits, where he greets workers by name, and as someone who sometimes attends funerals of employees’ family members or helps out when a colleague is sick.
Board chair Jay Hachigian said in an email that the company’s operational functions are being overseen by senior Market Basket managers with decades of experience — for the most part, the same senior managers as before.
“They are doing a terrific job,’’ Hachigian said. “No reporting structure was changed in any store so it’s business as usual and things are running smoothly.’’
Along those lines, Hachigian said that store sales were up last week compared with the same time a year ago, there have been no store disruptions, and all regular June bonuses were paid on time.
After the investigation is complete, Hachigian said, the board will “certainly consider long-term leadership’’ for the company but for now, there are no changes planned. The three sisters, Hachigian said, “stand squarely on the side of Market Basket customers and associates’’ and want to ensure Market Basket remains a family business that continues to provide the lowest possible prices while not affecting quality.
“It’s natural that these actions would leave people with questions and even concerns,’’ Hachigian said. “The board has taken many steps in conjunction with our on-the-ground associates to ensure questions are being answered. This is an ongoing process.’’
The board has not set a specific time period for how long Demoulas will be out on paid leave. Harvey Wolkoff, founding partner of Quinn Emanuel’s Boston office, said lawyers working on the investigation have been asked to take the time they need to make sure it’s fair and thorough.
Schmidt, Market Basket’s director of operations and one of the Demoulas loyalists who is out on leave, said he worries that the investigation is a precursor to removing Demoulas as CEO and installing new leadership.
“Without him running the company … now it’s a company of distrust and disrespect and fear,’’ Schmidt said. “Anytime you have that, that’s a recipe for disaster.’’
Schmidt said he now spends time idling at home, something he’s not used to doing.
“I want to be working, I want to be contributing to this company,’’ Schmidt said. “It’s not just about my livelihood. … It’s about the culture.’’
Jon Chesto can be reached at jon.chesto@globe.com. Follow him @jonchesto.
