Manchester, N.H. – Arthur T. Demoulas, chief executive officer of the Market Basket supermarket chain, has been placed on paid administrative leave by the company’s board of directors. The move comes amid allegations that Mr. Demoulas was planning actions that could disrupt the business.

Board’s Concerns: A Plan to Disrupt?

The board’s executive commitee communicated their decision in a letter to employees, stating that Mr. Demoulas and other employees working with him were placed on leave due to the belief that they were planning a disruption of the business and operations of Market Basket.

Retaliation Allegations

According to the board, Mr. Demoulas’s alleged plan was in retaliation for the board’s requirement that he collaborate with them on company operations and strategic planning. The board members expressed their concern that his actions were a direct response to this collaborative mandate.

assurances to Employees

Despite the leadership change, the board sought to reassure employees about their job security and benefits. The letter emphasized that no jobs are in jeopardy and all benefits,including bonuses and profit-sharing,will remain in place.

The board further stated, This action has nothing to do with the way we operate our business, and nothing about our everyday values or the work that makes Market Basket’s culture so special will change.

Examination Underway

While Mr. Demoulas is on leave, the board has initiated an investigation into the allegations. The outcome of this investigation will likely determine the next steps for both Mr. Demoulas and the company.

A History of Family Feuds

This is not the first time Market Basket has faced turmoil related to its leadership. more than a decade ago,a bitter family feud nearly brought the grocery chain to its knees.Arthur T. Demoulas was previously ousted by his cousin, Arthur S. Demoulas, which lead to widespread protests and boycotts.

The previous conflict saw employees and customers alike rallying behind Arthur T. Demoulas, demonstrating the deep connection he had forged with the company’s stakeholders.

After significant financial losses, Arthur T. Demoulas regained control of the company by purchasing the controlling half for $1.5 billion.

Developing Story

This is a developing story, and further updates will be provided as more information becomes available.