Market Basket files for restraining order to ban fired executives from company property
Market Basket is looking to get a restraining order against two fired executives. It's the latest chapter in a bitter struggle for control of the popular supermarket chain based in Tewksbury, Massachusetts.
The company has filed a complaint in court against Joseph Schmidt, the former director of operations, and Tom Gordon, the former grocery director. Both were fired July 22, nearly two months after they were suspended along with CEO Arthur T. Demoulas, for allegedly "encouraging a widespread work disruption" to show support for Demoulas.
Demoulas and the board of directors are in a dispute over his role and who should control the company. Both sides are scheduled to meet with a mediator on September 3.
Schmidt and Gordon, who are loyal to Demoulas, were fired last month for "insubordination, making false and derogatory remarks about the company and people associated with it, and inappropriate communications with colleagues," according to the board. Both denied they were insubordinate and were not planning any type of work stoppage.
"Totally unauthorized"
But the company said Monday that Schmidt was recently "documented on video after hours breaking and entering at the Tewksbury headquarters holding the master key that he has refused to return and moving around the offices totally unauthorized."
Market Basket Director Steven Collins said Schmidt and Gordon had been to 23 stores in recent days "to intimidate employees, to precipitate a work slowdown, employee walkout and customer boycott."
"That's why we are asking for a restraining order to enforce what we have already requested in writing: stay away from Market Basket property and leave associates alone," Collins said in a statement. "They lost the privilege of being employed by Market Basket based upon recent past behavior."
"Attacks on their integrity"
A spokesperson for Demoulas called the company's allegations against Schmidt and Gordon "false" and "attacks on their integrity."
"Once fired, they both decided to check in on their long-time colleagues, visiting stores and just trying to be a positive, reassuring figures in the turmoil. Last Thursday, Joe returned his company car to the office, as he was requested to do. While there, he went to visit briefly a couple of colleagues in the warehouse and office. They exchanged well wishes and he left without incident or doing anything inappropriate," Demoulas spokesperson Lauren Matteodo said in a statement.
A hearing on Market Basket's request for a restraining order will be held on Thursday in Lowell Superior Court, the company said.
Dispute over "culture of fear"
Last week, Market Basket corporate employee Valerie Polito sent a letter to the board alleging that there's now a culture of fear and hostility at the company. The next day, four other workers joined her, claiming the board has been trying to intimidate them.
The board has scheduled a meeting with Polito on August 21.
A group of 28 workers sent a letter to the media Tuesday to express their "shock and dismay" about their co-workers' allegations and said there is no "culture of fear."
"That is not the environment we work in. What they describe is not our experience," the group wrote. "In fact, in many ways the culture is better today than it was before the suspensions in May."