Demoulas Negotiations Reach Critical Stage, Closing Of 61 Stores An Option
Aug 27, 2014 09:00AM ● Published by Bill Gilman
The Boston Globe is reporting that the company's Board of Directors and senior management are exploring a so-called "contingency plan" that would close 61 of the 71 New England Market Basket stores to stop the loss of millions of dollars a day caused by the ongoing strike and consumer boycott.
According to the story in the Globe, the board feels that if a deal to sell the company to former CEO Arthur T. Demoulas is not completed soon, it will have no choice but to close the stores and layoff thousands of employees.
In the meantime, negotiations between the two sides continued late into Tuesday night and are expected to resume Wednesday.
Arthur T. Demoulas and his siblings own 49.5 percent of Demoulas stock. They are attempting to buy out cousin Arthur S. Demoulas and his family members, who own the remaining 50.5 percent of the stock and control the company's Board of Directors.
The board fired Arthur T. in June and replaced him with James Gooch and Felcia Thornton, sparking the employee strike, multiple rallies and consumer boycott.