Two Execs Fired for Insubordination in Company Crisis

Market Basket Leadership Crisis Escalates with Firings of Key Executives

The ongoing leadership crisis at Market Basket has taken a dramatic turn as two long-time executives, Joe Schmidt and Tom Gordon, were officially fired by the company’s board. The decision, announced on Tuesday, marks a significant escalation in the internal conflict that has been gripping the eastern New England grocery chain.

According to a statement from CEO Arthur T. Demoulas, the board member Steven Collins informed both Schmidt and Gordon of their termination. The pair had been placed on administrative leave in May alongside Demoulas and several other employees amid allegations that they were involved in planning a work stoppage similar to the events of 2014. At the time, Demoulas was ousted as CEO by his cousin, Arthur S. Demoulas, leading to a major disruption that cost the company over $500 million.

Demoulas expressed strong opposition to the firings, calling Schmidt and Gordon “two of the brightest and best grocery store operators in the business.” He criticized the board for failing to understand the company’s culture and accused them of treating long-standing employees like collateral damage in a planned power shift. “They are just collateral damage in this pre-planned coup,” he said.

Allegations of Disruptive Behavior

The board released a detailed statement explaining the reasons behind the firings. They claimed that Schmidt and Gordon were found guilty of insubordination, making false and derogatory remarks about the company, and engaging in inappropriate communications with colleagues. According to the board, an investigation uncovered evidence that the two executives were involved in planning a work disruption to support Demoulas.

The board pointed to specific actions, including statements made by Gordon referring to the company’s majority shareholders—Demoulas’s sisters—as “evil.” Additionally, Gordon reportedly told employees to “choose sides wisely,” implying potential repercussions for those who did not support Demoulas. The board also alleged that Schmidt spread false information about the company’s financial status, claiming that employees would lose bonuses and profit-sharing if Demoulas were removed as CEO.

Unauthorized Media Campaigns

The board further stated that both Schmidt and Gordon engaged in unauthorized media campaigns during their suspensions. These included interviews with local news outlets where they made false claims about the company and its leadership. For example, Schmidt claimed that he was escorted out of the headquarters by six armed guards, a statement he later admitted had no factual basis.

Schmidt also made exaggerated claims about the company’s atmosphere under Demoulas’s absence, describing it as one of “distrust, disrespect and fear.” He also fabricated stories about the board’s intentions to give shares of the company to outsiders and promise large dividends to shareholders. The board noted that these statements were not only false but also aimed at undermining the company’s stability.

Continuing Conflicts

In addition to Schmidt and Gordon, several other employees have also been placed on leave. District Supervisor Paul Quigley and Operations Supervisors Adam Deschene and Esteban Alvarez were suspended over allegations of disruptive behavior. They have since spoken out, claiming they were punished for voicing concerns about the treatment of Demoulas and others.

The board emphasized that the firings were a direct result of the executives’ continued violations of company policies. Despite being warned against communicating with employees, both Schmidt and Gordon allegedly continued to engage with staff, encouraging them to disrupt operations.

Ongoing Legal and Internal Struggles

The situation remains tense as the board continues to investigate the alleged misconduct. Meanwhile, Demoulas and his supporters have vowed to fight the decisions, calling them “heartless and unwarranted.” The conflict highlights the deep divisions within the company and raises questions about the future of its leadership structure.

As the dispute unfolds, the outcome will likely shape the direction of Market Basket for years to come. The board’s actions reflect their determination to restore order and protect the company’s interests, while Demoulas and his allies continue to challenge what they see as an unfair and politically motivated move.