Charles Esther
A Massachusetts judge has approved a temporary restraining order against two former executives of Market Basket, the family-owned grocery chain with 90 stores across New England.
The order prevents Joseph Schmidt, former director of operations, and Tom Gordon, former store and grocery director, from entering Market Basket stores or company property.
Both Schmidt and Gordon were previously placed on administrative leave, along with CEO Arthur T. Demoulas.
Background of Market Basket Dispute
The Demoulas family, founders of Market Basket, have a long history of family disputes and leadership battles.
The latest tension revolves around Schmidt and Gordon, described by Market Basket as “lieutenants” of suspended CEO Arthur Demoulas, allegedly engaging in unauthorized store visits and corporate office entries.
Court Findings
The court concluded that Schmidt and Gordon’s conduct was harmful to Market Basket and ignored repeated warnings to cease their activities.
Judge William Barrett stated that the former executives were given clear instructions not to enter Market Basket properties, but they continued to access stores and headquarters.
Market Basket board director Steve Collins emphasized that the court order stops their “ongoing unlawful behavior” and protects associates from intimidation.
Former Executives Respond
Schmidt expressed disappointment with the ruling, but said he holds great respect for the judicial system.
A spokesperson for Demoulas, Justine Griffin, defended the ex-executives, saying they acted in support of employees, not to intimidate, and praised their contributions to Market Basket’s culture and operations.
CEO and Executives on Leave
Demoulas, Schmidt, and Gordon were placed on leave in May 2025 over allegations that the CEO was planning a work stoppage to disrupt company operations.
The company stated the leave was a response to noncompliance with board directives regarding corporate oversight and access to employees.
Allegations of Intimidation Campaign
Market Basket’s lawyers claimed Schmidt and Gordon ran a monthslong campaign of intimidation, allegedly encouraging associates to slow work or leave to pressure management to reinstate Demoulas.
The former executives denied these claims, stating their store visits were to check on colleagues who welcomed them.
Historical Context
In 2014, Demoulas was fired following a family dispute, which led to widespread protests by workers.
He was later reinstated after buying the rival family faction’s $1.5 billion majority stake, regaining control of Market Basket.
Market Basket’s Position
The company asserts that the restraining order is necessary to protect associates, prevent disruption, and maintain order across its New England stores.
Market Basket’s board remains firm that any attempts to bypass company rules or intimidate staff will be legally stopped.
Key Takeaways
- The restraining order bars former executives from Market Basket stores and offices.
- The court found their actions harmful and unlawful.
- The case highlights ongoing leadership tensions in the family-owned chain.
- CEO Arthur Demoulas remains on administrative leave while the company stabilizes operations.
David Awoyode