It feels like déjà vu, doesn't it? If you live in New England, the name Demoulas is basically synonymous with two things: cheap groceries and absolute corporate chaos. You’ve probably seen the headlines or noticed the tension at your local register. The news that Market Basket CEO Demoulas on leave started as a whisper in early 2025 and exploded into a full-blown boardroom war by the end of the year.
But here’s the thing—this isn't just another rich guy taking a vacation. This is about Artie T. (Arthur T. Demoulas), the man employees literally worship, and a power struggle that makes Succession look like a kindergarten play.
Honestly, it’s a mess.
The Suspension That Shook New England
In May 2025, the Market Basket board of directors did the unthinkable. They placed Arthur T. Demoulas on paid administrative leave. Why? Well, according to the board, they had "credible allegations" that Artie T. was secretly plotting a massive work stoppage. They basically accused him of trying to weaponize his own employees to maintain his "autocratic" control over the company.
Artie T. didn't take that sitting down. His team immediately fired back, calling the investigation a "farcical cover for a hostile takeover."
Think about that for a second. You have a CEO who has been at the helm for decades, who survived the legendary 2014 ouster, being told to stay home because the board—which includes his own three sisters—thinks he’s a dictator. It’s wild. The board claimed he refused to provide annual budgets, ignored their requests for financial transparency, and was trying to unilaterally appoint his children as successors without any oversight.
Who is running the show now?
While the legal battles raged, the company couldn't just sit idle. In September 2025, after a mediation attempt in Delaware failed miserably, the board officially fired Arthur T. Demoulas. To keep the lights on and the shelves stocked, they tapped Donald T. Mulligan as the interim CEO.
Mulligan isn't some corporate shark from the outside. He’s a veteran. He’s been with the company for 42 years and served as the CFO for over a quarter-century. Interestingly, Mulligan was actually one of the guys who walked out in support of Artie T. back in 2014. Talk about a complicated workplace dynamic.
Why Market Basket CEO Demoulas on Leave Still Matters in 2026
You’d think after the firing, things would quiet down. Nope. As we sit here in January 2026, the battle has moved from the warehouse to the Delaware Court of Chancery.
Artie T. is currently countersuing to get his job back. The legal discovery process has been... revealing, to say the least. The board is hunting for evidence of "secret plans" to start a strike, while Artie T. is arguing that his sisters and their appointed board members are violating their fiduciary duties.
Here is what the situation looks like right now:
- The Lawsuit: A massive trial took place in December 2025. We are currently waiting for a judge to decide if Artie T. was "validly terminated" or if he’s heading back to the corporate office in Tewksbury.
- The Notebooks: In a very "old school" twist, the board is frustrated because Artie T. doesn't use email. He keeps everything in handwritten notebooks. The legal fight over a single page of notes from one of those books has been a major point of contention.
- The Store Performance: This is the part that surprises everyone. Despite the absolute firestorm at the top, Market Basket was just ranked the No. 2 grocery store chain in America by Dunnhumby for 2026. Somehow, the "More for Your Dollar" magic is still working even while the family is tearing itself apart.
The Human Element: Associates and Restraining Orders
It’s easy to get lost in the numbers, but the human side of this is pretty dark. When Arthur T. was placed on leave, it wasn't just him. His son Telemachus and his daughter Madeline were also sidelined.
Then came the "purges."
The board started firing anyone they deemed a "Demoulas loyalist." This included high-level executives like Joseph Schmidt (Director of Operations) and Tom Gordon (Grocery Director). These guys had nearly 90 years of combined experience at the company. To make it even more intense, the board actually got restraining orders to keep Schmidt and Gordon away from Market Basket properties. They claimed the former execs were entering stores to "intimidate" workers and drum up support for Artie T.
What about the 2014 vibes?
Everyone remembers the 2014 protests. Empty shelves, "I Support Artie T" signs in every window, and customers going to Stop & Shop just to make a point.
The board was terrified of a repeat. That’s likely why they were so aggressive with the suspensions and the legal filings this time around. They wanted to decapitate the leadership of any potential rebellion before it could start. And so far? It worked. There hasn't been a massive walkout yet. Customers are still shopping because, frankly, in this economy, the low prices are more important to most families than who sits in the CEO chair.
What Happens Next?
Honestly, we are in a holding pattern. The Delaware court's decision is the big domino. If the judge rules in favor of the board, the Artie T. era might truly be over. But if the judge finds that the sisters acted in bad faith? We could see a repeat of 2014 where the "King of Groceries" returns to a hero's welcome.
Actionable Insights for the Market Basket Community:
- Watch the Courtroom: The Delaware Court of Chancery's ruling is expected any day now. This is the only thing that determines if a leadership change is permanent.
- Monitor the "Artie T" Factor: Keep an eye on local employee groups. While a strike hasn't happened yet, the tension is high. If the court rules against Artie T., that’s the moment a walkout is most likely to trigger.
- Focus on the Price: For now, the interim leadership is sticking to the "More for Your Dollar" model. As long as they don't start raising prices or adding self-checkouts (which Market Basket famously avoids), the customer base will likely stay loyal.
- Succession is the Real Issue: Regardless of who wins the court case, the lack of a clear, board-approved succession plan is the company's biggest long-term risk. This is the "secret" reason for the feud—the family can't agree on who comes next.
The saga of Market Basket CEO Demoulas on leave is a reminder that even the most successful businesses can be brought to their knees by family friction. Whether Artie T. is a "dictator" or a "hero" depends entirely on who you ask, but for the shoppers in the checkout line, they just want to know if the milk is still the cheapest in town.
The next few months will tell us if the culture that made Market Basket special can survive without the man who built it.
Stay tuned. The drama in Tewksbury is far from over.
To keep tabs on the latest developments, you can check local New England business outlets or follow the Delaware court filings directly if you're feeling particularly legally-minded.