July 23, 2014 1:07 PM ET

Food and Staples Retailing

Company Overview of DeMoulas Super Markets, Inc.

Company Overview

DeMoulas Super Markets, Inc. operates various grocery stores in Massachusetts and New Hampshire. The company's product includes gourmet gift baskets, general food, groceries, prepared food, seafood, dairy products including low carb products, and first aid. DeMoulas Super Markets, Inc. was founded in 1917 and is based in Tewksbury, Massachusetts.

875 East Street

Tewksbury, MA 01876-1469

United States

Founded in 1917

Phone:

978-851-8000

Fax:

978-640-8390

Key Executives for DeMoulas Super Markets, Inc.

Vice President of Finance and Treasurer
Vice President and Controller
Executive Vice President of Marketing
Compensation as of Fiscal Year 2014.

DeMoulas Super Markets, Inc. Key Developments

Demoulas Supermarkets Inc. Announces Executive Departures

Arthur T. Demoulas, the CEO of Demoulas Supermarkets Inc., was fired on June 23, 2014 by the company's board of directors. Arthur T. Demoulas had been let go along with Bill Marsden, Market Basket operations director, and Joseph Rockwell, vice president of grocery sales and merchandising.

Demoulas Supermarket Inc. Announces Board Member Resignations

An independent member of Demoulas Supermarket Inc.'s board of directors has quit, potentially creating a shift in power for an entity that has made controversial decisions including approval of a $300 million dividend and the hiring of an executive search firm, potentially to oust the Market Basket grocery chain's chief executive. The director, Nabil El-Hage, was appointed to the board by a shareholder group of the Demoulas family that recently changed allegiance from CEO Arthur T. Demoulas to his cousin Arthur S. Demoulas, a director and major shareholder who has sought Arthur T's removal. Two of the independent directors, Cowan and Weiner, failed to have a majority of the seven-member board affirm their independence. El-Hage, on the other hand, was given a unanimous vote in his favor. In his resignation letter, El-Hage said he was resigning effective immediately but did not state a reason. He will also resign as a recently-appointed trustee of the company's employee profit-sharing plan, which could also change the future of a popular benefit for the company's more than 20,000 employees.

Demoulas Family Returns to Court in Fight over Market Basket Dividend

The Demoulas family aligned with management at the Market Basket chain is suing to block the issuance of $300 million in dividends to the chain's shareholders. The Arthur T. side of the family this week sued the Arthur S. side, alleging that this shuffling of the board violates a previous court order aimed at bringing some semblance of harmony to this family. The board, the Arthur T. side alleges, now has essentially been stacked with three Class A directors. The lawsuit alleges the Arthur S. side simply rebranded board member Keith Cowan as an independent director, but that Cowan is taking direction from and voting in lockstep with Arthur S. The court order allows for two Class A directors, two Class B directors (representing the Arthur T. side, the Class B shareholders) and three independent directors. The Class A shareholders (the Arthur S. side) claim that the board restructuring in June was part of an effort to establish more fiduciary responsibility and accountability on the board. The Arthur S. side has been pushing for a release of more money to the family shareholders from the company coffers. Cowan, now the board chairman, voted last month in favor of a $300 million distribution to shareholders. It's this distribution that the Arthur T. side wants a judge to block. In their motion for a preliminary injunction, the Class B shareholders argue that this $300 million distribution is of such a magnitude that it will change the enormously successful business model that the company was built on and has been operating under for the last fifty years. Arthur S. has been trying to depose Arthur T. from the president's job, the Arthur T. side argues in its suit, and even approached two top Market Basket executives unannounced at their homes in June to see if they would side with him instead. The lawsuit from the Arthur T. side claims that Arthur S. said he and his side of the family think the Market Basket prices are too low and that the company's growth should be greatly curtailed.

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