Two longtime Market Basket executives fired amid company turmoil 

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The family drama at Market Basket escalated this week as two longtime executives were terminated last week.

Joe Schmidt, the director of operations, and Tom Gordon, the grocery director, were fired by the board of the grocery chain for “insubordination, making false and derogatory remarks about the company and people associated with it, and inappropriate communications with colleagues,” according to a statement released by the board July 22. 

Hours before that statement was made public, Schmidt and another executive, Paul Quigley, appeared on GBH New radio to speak about the company’s internal crisis. Gordon was also scheduled to appear on the program but did not.

“We’ve worked hard with this company for multiple decades, building this company, and over some spite and greed and pettiness, they’ve taken us and pushed us out,” Quigley said.

They spoke in support of Market Basket CEO Arthur “Artie” T. Demoulas, who was placed on paid administrative leave in May with his two children and several other top executives, following allegations that Demoulas planned a work stoppage to protest board decisions. The board accused Demoulas of not creating a succession plan and attempting to unilaterally appoint his children as successors without input from the board or majority shareholders—claims he strongly denies.

Demoulas said he’s being pushed out by his three sisters and the board members they’ve appointed in a “hostile takeover attempt.” Quigley elaborated more on the radio show and said one of the sisters wanted her son to be CEO of the company, which does around $8 billion in annual revenue.

On Wednesday morning, Schmidt and Gordon held a press conference in Reading, Massachusetts to address their terminations and speak to the future of the company.

Schmidt called the allegation that there was a work stoppage “preposterous.” 

“I think it’s a coup,” Schmidt said, in a recording of the interview. “I think it has been from day one. There’s an agenda from the sisters to remove the boss. They’ve done that and now the ball is in the board’s court.”

The two executives described a growing “culture of fear” within Market Basket, which they said stands in stark contrast to the company’s traditionally open, loyal environment.

This latest dispute stems from long-running tensions within the Demoulas family. A similar conflict erupted in 2014 between Artie T. and his cousin Arthur S. It resulted in six weeks of protests, walkouts, and customer boycotts that ultimately resulted in Artie T. being reinstated as CEO. The company made headlines at that time for what was described as the largest non-union labor movement in the country.

Truck drivers at the time refused to make deliveries, customers stopped shopping, and associates stood united behind Demoulas.

In August 2024, Market Basket shared a series of commemorative videos on Facebook looking back on the events of 2014. In one, Gordon recalled the morning Demoulas was scheduled to meet with the governor about the protests. Instead, he canceled to attend the funeral of Gordon’s mother.

“I’ll never forget that,” he said.

Executives in those videos spoke about the family-like culture of the company.

“It’s a culture where everyone can succeed no matter where you’re from, who you are, what your education level is. It’s one of a kind,” Gordon said.

Asked about the future of Market Basket on Wednesday, Schmidt said, “If Mr. Demoulas does not come back, the company has changed, and it’s not going in a good place.”

Despite their terminations, both vowed to continue fighting for the company’s culture and values.

When asked how the turmoil might affect shoppers, Schmidt and Gordon said Market Basket’s loyal customer base is drawn to more than just low prices.

“Most systems will sustain themselves for a period, but they start to break down, especially when people get off the proper mindset in terms of focus on the customer,” Schmidt said. “You might not feel it going to pick up that head of lettuce today, but if things continue in this trajectory, you’ll see a big difference.”