Court Order Keeps Former Executives Away from Market Basket Stores

The family-run Market Basket grocery chain, known for its internal conflicts, is embroiled in another legal battle.

A judge in Massachusetts has issued a temporary injunction favoring the Market Basket grocery chain. This decision prevents two former executives, considered close allies of the CEO Arthur T. Demoulas, currently under suspension, from accessing any of its 90 retail locations and premises.

Joseph Schmidt, the ex-director of operations, and Tom Gordon, the former director of store and grocery functions, are now prohibited from entering Market Basket's outlets and properties by order of the Middlesex Superior Court.

Founded by the Demoulas family, this grocery empire has been steeped in familial strife and power tussles for many years.

"The purpose of the court's ruling is to halt the unlawful actions of these individuals and to keep them from disrupting Market Basket's premises," stated board director Steve Collins to Business Insider.

Collins remarked that, despite clear restrictions, both Schmidt and Gordon visited over 20 stores without permission. Schmidt even utilized a back entrance to the company headquarters to sift through associates' offices.

According to Collins, the court determined the actions of Schmidt and Gordon to be incredible and detrimental to Market Basket.

Market Basket officials expressed concern that Schmidt and Gordon—labeled as Demoulas's 'lieutenants'—were attempting to intimidate staff and cause operational disturbance.

Continued Tensions and Reactions

These actions persisted, Collins said, despite multiple warnings, which led to the court putting an end to the unlawful behavior.

Judge William Barrett's ruling clearly outlined that Schmidt and Gordon were to stay out of Market Basket facilities.

Although Schmidt expressed disappointment with the outcome, he also affirmed his respect for the judicial process.

Demoulas's representative, Justine Griffin, expressed surprise at the decision, defending Schmidt and Gordon's long-standing contributions to the chain's success.

Griffin emphasized that after their dismissals, Schmidt and Gordon visited stores not to intimidate but to assure staff of the future.

While they respect the court's decision, Griffin lamented that it stems from misunderstandings of their intentions.

The board had put Demoulas, Schmidt, and Gordon on leave on May 28 due to allegations of a planned work disruption by the CEO.

The executive committee accused Demoulas of retaliating against board directives meant to ensure oversight and employee access.

Demoulas remains on leave with continued pay.

Legal filings argue that Schmidt and Gordon led a persistent campaign to pressure the company into reinstating them and Demoulas by instigating workplace disorder.

Schmidt and Gordon denied orchestrating fear, claiming their visits were welcomed by former colleagues.

Back in 2014, Demoulas was dismissed after family conflicts but later regained control by purchasing a majority stake from opposing family members.