July 14, 2025 • 38 mins
At the end of May, the Market Basket grocery company placed its CEO Arthur Demoulas and a handful of employees on paid leave to investigate rumors that Demoulas and allies may be planning a work stoppage or other disruptions. When suspended executives Tom Gordon and Joe Schmidt made the decision to visit two Market Basket stores in NH to congratulate longtime employees retiring, despite being originally directed to stay away from MB properties as part of their leave, it caused outrage from the board. Tom and Joe claimed their visits were to say goodbye and a job well done to two beloved longtime store managers, nothing more. Tom Gordan and Joe Schmidt joined Dan to discuss the ongoing Market Basket drama.
*The Market Basket organization has been notified of this evening’s topics and has been invited to join us on NightSide at some point to discuss*
*The Market Basket organization has been notified of this evening’s topics and has been invited to join us on NightSide at some point to discuss*
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
It's Night Side with Dan Ray on wv Boston's news radio.
Speaker 2 (00:07):
I think we're gonna Stan Watkins, Welcome back everyone. As
we move into our talk portion of our program, we're
going to focus on a story that most of you
should be fairly familiar with, UH, and that is the
continuing drama involving the my favorite supermarket market basket. Market
Basket just a couple of months ago placed it's legendary
(00:34):
CEO Arthur Demoulis and a handful of employees on paid leave.
Speaker 3 (00:39):
UH.
Speaker 2 (00:40):
There was a it's a family board of directors.
Speaker 1 (00:45):
UH.
Speaker 2 (00:45):
And we're going to get into how this happened, but
more importantly, we're going to talk about what's been going
on with the two I'm going to use the word
veteran Market Basket employees, and I think I can use
that term pretty pretty pretty clearly. Joe Schmidt has been
(01:07):
the director of operations at market Basket for nearly forty years,
so we're going to call it thirty nine. Joe Schmidt,
how are you tonight?
Speaker 4 (01:16):
Very good?
Speaker 5 (01:16):
Dan?
Speaker 4 (01:16):
How are you this evening good?
Speaker 2 (01:18):
What did you do for market Basket or with market
Basket for nearly four decades? What does the director of
Operations title mean so so, as.
Speaker 4 (01:29):
You mentioned, I'm the director of Operations and that has
a vast array of responsibilities pertaining to, you know, the
day to day operations of the stores, the day to
day operations of the company, working with the department directors,
and you know, being part of the support team for
mister Demolas, who has run an exceptional company and you know,
has the company performing on track.
Speaker 2 (01:51):
There are if I'm not mistaken about ninety Demolis's grocery stores,
is you know, is that the the approximate number?
Speaker 3 (02:01):
Or am I underestimating that number?
Speaker 4 (02:03):
No, You're right on the money with that ninety locations.
And you know, under mister de Moolla's leadership, the company
has grown exponentially and you know, everything was firing an
off sylliness. You know, customers, associates and business partners all
being taken care of and benefiting greatly from the model
and the culture of Market Basket.
Speaker 2 (02:23):
And of course there was the incident of the whole event,
the drama ten years ago where he lost control of
the company and there was there was really a revolution
amongst the employees and uprising and people stopped going there.
And in twenty fifteen, was sort of a water shed
(02:44):
year for for you know, market Basket and and for
mister Demulis Arthur T. Demulis rd T, as he is
so affectionately called. So let me also bring into the
conversation Tom Gordon, not a former relief picture for the
Red Sox, but Tom Gordon, who's the director of grocery operations.
(03:07):
And he actually out distanced Joe. Joe is a relative
newcomer in this company. I've been worked there thirty nine years.
Tom is just short of fifty years. You're thinking of
making a career of this, Tom, I would I would
assume I.
Speaker 4 (03:24):
Was thinking of making a career. But yeah, which I
was pretty good too. It's about six weeks ago.
Speaker 3 (03:29):
Yeah, yeah, So.
Speaker 2 (03:31):
When the the board of directors basically and it's it's
an intramural fight that's going on here. It's an interfamilial
fight because RDT owned twenty eight percent. It's privately held company,
(03:52):
you're not publicly traded, right right, rrect Okay. And there
are three of his sisters, each of whom owned twenty percent,
and they actually stood by him fifteen years ago when
there was that first effort to oust him and it failed.
(04:17):
But the three sisters sort of changed their attitude towards
Arthur t and it was there sixty percent of the
ownership of the board that really led to his dismissal.
If that, I don't know what words we want to
use here. I mean, you two gentlemen are at this
(04:38):
point on what's called I guess administrative leave. Is that
you're being paid, but you're not being allowed to work.
I don't understand why this would be done to two
people who have given their life's blood to the company.
To either one of you want to respond to that obvious.
Speaker 4 (04:57):
Question, Yeah, sure, you know. I think what we're looking
at here is is authors three sisters, you know, want
to extract more cash from the company, and quite frankly,
you know, mister Demolls is the gatekeeper of the entire
organization and making sure that you know, the customers are
taken care of, the associates are taken care of, the
business partners are taken care of, and everybody benefits them
(05:19):
from that, and the shareholders a company, I'll benefit from
it as well. So you know, quite frankly, the sisters
wanted to remove mister Demoles from his post, and they
were actually out talking about it. Publicly as early as
a year ago. And you know, with the thought process
of installing one of his sisters sons, Michael Kettenbach, who's
the Deli director, into the into the position of CEO,
(05:42):
I believe in the future. So it's it's kind of
a succession issue in terms of, you know, them putting
in a different family member into the company and excluding
mister Demollah's son and daughter from potentially having that position
as well. And so we call it a coup, you know,
which started with the removal of Terry Colton and Bill Shay.
(06:05):
Bill Shave was the chairman of the board for a
long time. He was removed from that position. Terry Copton
was taken off the board of directors and three individuals
were instilled onto the board Stephen Collins, Jay Hatchigan and
Michael Keyes.
Speaker 2 (06:18):
Now did the board of directors each have one vote
or did they vote the amount of shares or whatever
or ownership interest, because at this point it would seem
to me that if Arthur T's sisters owned sixty percent
of the company between the three of them, no matter
how many directors there were, they owned sixty percent of.
Speaker 4 (06:38):
The company, right, so their board members that they basically
put onto the board of directors essentially have the controlling interest.
Speaker 2 (06:48):
So okay, so the sisters are not on the board
of directors. They they have the financial status, but they
were not people who actually had to hast to vote.
Speaker 3 (07:00):
Is that is that what you're telling me?
Speaker 6 (07:02):
That's correct?
Speaker 4 (07:03):
So essentially they picked the board members to meet their
objective of I was seeing their brother from the leadership position,
and that's why we're in the situation where we are.
So as a result of that, the board had their
marching orders to remove mister Demola's and top management tom myself,
you know, Madeline Ta Jeron Lewis, who is author's brother
(07:23):
in law. So it's kind of take the family out,
so to speak.
Speaker 2 (07:27):
So I don't want to get too deep into the names,
because we're talking about you people whose names are not
common knowledge.
Speaker 3 (07:36):
I want to deal with the issue of.
Speaker 2 (07:40):
Is there any way It seems to me like this
is an irreconcilable conflict. I mean, if the sisters have control,
what can mister Demoulis do or can folks on your
side of the field do? I mean, if they follow
the rules and regulations of the Eye laws, have you
(08:03):
all lawyered up at this point, are where do we
spend in that regard?
Speaker 4 (08:09):
Yeah, this various council involved. Certainly, when we're talking about
an eight billion dollar company, you know, the company is
in the best hands of mister Demolis, has proven track
records shows that you know. In fact, the company was
named in the dun Humbry Report as number two in
the nation and number one overall in price. So it
really doesn't come down to you know, performance, It really
(08:30):
comes down to just a personal situation and a family situation.
And so when you ask, is it's something that's able
to be recovered. While certainly the the the prudent thing
to do would be the reinstate mister Demolis to his
leadership position that he's been successful, which is benefiting all
the shareholders and the customers and associates, and so anything
(08:52):
can be reversed. But right now it's going down a
path of destruction.
Speaker 2 (08:56):
And I'm going to take a quick break here. My
guests are two long term employees, more than employees, very
important directors of operations and directors of grocery operations, Joe
Schmidt and Tom Gordon. Between the two of them, they
have spent given about ninety years of their two lives
to this company, and they are now on paid administrative leave.
(09:20):
I assume that your presence on the program tonight is
not going to thrill those who have put you on
paid administrative leave. And when I come back, I want
to ask you how concerned are you by just doing
this show you might incur even more wrath from those
(09:40):
who now control the future of Market Basket. My name
is Dan Ray. If you'd like to join the conversation
and talk to two men who have helped, along with
Arthur Demulis, Arthur T. De Mulis, to create this amazing,
amazing grocery chain, my favorite chain, and that's why I'm
(10:00):
interested in it. There are a lot of great grocery stores,
but I think that in terms of the way employees
have been treated in the past, the way customers have
been treated, I think.
Speaker 3 (10:14):
That no.
Speaker 2 (10:18):
Company is better than Demulis. There are companies that are
that appeal to a different clientele. Roach Brothers is another chain. Again,
I hate to use the word chain, but that I
truly respect, again a family owned company, uh as opposed
to some of the companies that are owned by these
corporate Gouiat's from around the company, but from around the country.
(10:43):
But we'll get to all of that if you like
to join the conversation with these guys. These two gentlemen
are doing tonight, I think take some courage, uh, and
they certainly have helped create, along with Arthur Demoulis, a
great company in market Basket.
Speaker 3 (10:58):
Six thirty six.
Speaker 2 (11:02):
We'll be right back on Night's side with your calls
and comments coming back, as well as more conversation with
Tom Gordon and Joe Schmidt, formerly of Market Basket.
Speaker 1 (11:12):
It's Night Side with Dan Ray, Boston's news radio.
Speaker 2 (11:18):
Talking with two veterans I think I can say veterans
of careers at market Basket, Joe Schmitt, director of operations
for thirty nine years and Tom Gordon, director of grocery
operations just short of fifty years. Gentlemen, let me ask
you this question. I want to ask it as politely
as I can. Why are you doing this interview with
(11:40):
me tonight? I assumed that the folks who are now
running my acro basket are not going to be happy
with you be here. We did invite them to come
on tonight or to come on another night, and they
chose not to. If they want to. We'll give them
an hour you know, later on this week. But this
is not going to make them happy. Why do this, you.
Speaker 4 (12:03):
Know, Dan, This is about doing the right thing and
standing up for the guy who's.
Speaker 3 (12:09):
This is Joe. This is Joe Schmidt, the director of operations.
Speaker 4 (12:11):
Will have no This is Tom going talking about Tom.
Speaker 3 (12:14):
Okay, go ahead, Tom, I'm sorry.
Speaker 4 (12:18):
This is about standing up for the boss that we've
worked for. I've worked for my whole life, knowing what
kind of a man is, what kind of companies run,
and uh, you know, to be To receive a letter
from three guys that I spent a total of five
minutes with, probably prior to them giving by my letter
and putting me on the administrative league accusing us of organizing
(12:38):
a work stoppage is is a little disheartening. I think
that after fifty years, I'd be organizing a work stoppage
against the guy that I'd.
Speaker 5 (12:46):
Love working for for almost fifty years.
Speaker 4 (12:49):
And the fact that that that perception is out there
amongst the company, that perhaps mister Schmidt and myself and
the boss and madel Mpia have been organizing something like
that is preposterous and it's it's uh it's quite troubling.
And like I said, at some point, it's not about
worrying about my salary. It's about doing what's right and
(13:11):
the ships will follow they fall.
Speaker 2 (13:13):
Well, said Tom Joe. You, I assume you must feel
the same way. I'd love to hear you articulate your
viewpoint on this.
Speaker 4 (13:20):
Yeah, there's no question. I mean, when it comes down
to it, it's important to protect the culture of the company.
You know, this affects so many customers, so many associates,
business partners, and it's something that you know, if this culture,
which is very special is changed in the future. You know,
even though Jay Hatchet and chairman of the board says
nothing's going to change, well, things have already changed and
(13:42):
changed dramatically. And so that's why, you know, you take
a stand for what you believe in. And and this
is bigger than us and being a part of the
market basket and being fortunate to be a part of
the team for so many years. It's a special place
to work. We want to help preserve that. You know,
we will put on the bench for for allegations and
you know, and basically the board hired a law off
room by the name of Quinn Emmanuel that you know,
(14:04):
and basically they're trying to come up with something so
they can justify removing us. So there's a bigger picture here.
You have a couple of people. You know, Jay Hatchigan,
who's you know, he works at Gunderson Detmer and Boston.
You know, he advises clients on private and public market
acquisitions and venture funds. You know Steve Collins, he's a
private equity guy, and Michael Keys is an acquisition guy
(14:27):
in real estate. So it's you know, you've taken the
Wall Street mentality and trying to infuse it into the
Main Street mentality and market path has always been about
people culture and protecting that culture. And so that's why
we're here today.
Speaker 3 (14:40):
What are you?
Speaker 2 (14:41):
Let me start with you, Joe, and then we'll go
to news at the bottom they are get the phone
calls immediately thereafter.
Speaker 3 (14:46):
What are you.
Speaker 2 (14:47):
Folks hearing from folks inside at this point? Has the
culture changed in the last you know, six to eight weeks,
the cash registers just as busy of the parking launch
just is full. Do people have they perceived differences that
are that are going on? Or is this again simply
(15:08):
and inter familial dispute. Uh, and you guys are just
caught in the crossfire.
Speaker 4 (15:15):
Well, you know, to answer your question, the answer is yes,
the culture has changed already, and in fact, right at
the corporate office and a gentleman by the name of
Paul Quigley, who was one of the supervisors. It always
used to be a place at the corporate office that
if anybody had a question or anywhere in the company,
that they could pick up the phone. They could go
and see somebody, speak to mister Demolz, speak to Tom,
speak to myself and ask a question. Now, if you
(15:37):
ask a question about what's going on with the leadership,
what's going on? When are the guys coming back?
Speaker 3 (15:42):
When?
Speaker 4 (15:42):
When is the team coming back? Yes, silenced immediately, And
that's there's a couple of instances that you know, Adam
Desen and Adam and Esteban Alvarez and Paul Quigley just
recently was put on the bench because they spoke out.
And we're asking questions and support of mister Demoles And
you know the way, we'll.
Speaker 2 (15:59):
Be caller during the next half hour. He's actually number
one here, so we will get to him. He's the
gentleman who they sent a letter to and they were
sloppy and sending the letter, and it didn't go to
the employee. It went to a customer of a similar name.
I read that story over the weekend in one of
the Boston newspapers.
Speaker 4 (16:19):
Correct correct, Yeah, yeah, they said, I don't know where
they I don't they just what in some kind of
Google search or some find somebody's search. But they sent
it to the wrong Paul quickly, and he wasn't too
happy about receiving a letter. And I don't think Paul
was too happy that is his fate with the company
was sent to the wrong person, and before you know
it showed up on the talk show and being the
(16:42):
letter being read. So I think Paul's get a serious
concern with that as well. And there's a there's a man,
a man that's been with the company for forty years,
and they couldn't even do their due diligence to go
to the payroll department and ask for the man's proper address.
So now you have a customer that's down on the
cape involved in his own personal work working matter. It's
just it's not right. And it goes to show you
how disconnected this board of directors is from the company.
Speaker 3 (17:04):
Well, I can just.
Speaker 2 (17:05):
Tell you that if that if I received a letter
which was incorrectly sent to the customer of a similar
name that said you would differ to go on the
property you're paying from the property, I'd say, great. You
know I'm only a customer. You want to ban me,
go ahead, boy, talk about a rookie mistake. Let's take
(17:25):
a break, gentlemen. We got the news and we're going
to get to phone calls. I promise I only have
one line open, and that's six one, seven, nine thirty.
You got to dial quickly. We'll get you in and
we're going to talk about this until ten o'clock. Coming
back on Night Side with my guests Joe Schmidt and
Tom Gordon, between the two of them, nearly ninety years
(17:47):
working for Market Basket and shown the door pretty quickly,
pretty summarily. I don't know that's the way that employees
should be treated. Well, as a matter of fact, I
know that is not the way employees should be treat it.
Back on Night's Side after.
Speaker 1 (18:01):
This, it's Boston's News Radio with us.
Speaker 2 (18:09):
Are two I don't want to say former Market Basket
employees because they are on paid administratively. Joe Schmidt, director
of operations for thirty nine years, Tom Gordon, director of
grocery operations for nearly fifty years.
Speaker 1 (18:26):
Uh.
Speaker 2 (18:26):
And we're going to be joined now by another former
Market Basket employee. And again I say the word I
use the word former. But there is still to the
best of my or at least, mister Joe Schmidt and
Tom Tom Tom Morgan is still.
Speaker 3 (18:48):
Tom Gordon.
Speaker 2 (18:49):
Excuse me, I'm sorry, I'm sorry, Tom Gordon are still
on paid They on paid administrative leave.
Speaker 3 (18:58):
How do you consider it? Before I go to Paul Tom,
how Tom Gordon, do you can see yourself.
Speaker 2 (19:06):
The current employee by virtue of the fact that you're
unpaid administrative leave.
Speaker 4 (19:10):
Yes, I still consider myself an employee of the company,
and I hope to continue being an.
Speaker 6 (19:15):
Employee of the company.
Speaker 4 (19:16):
But like I said, the the the manner of which
we were we were put on leave was very disappointing
and uh, without any fact basis and and so you
know it is just as a side note, Dan to
sit there for my office which is on the on
the front wall of the building, and to watch after
the moles and his children have to take all their
(19:38):
personal effects out of the office and kind of schleve
them down the sidewalk in front of their employees.
Speaker 6 (19:46):
You know, all the people that.
Speaker 4 (19:47):
Worked at the office. Was was completely uncalled for. I
was horrified to sit there and watch the boss have
to take this stuff out in boxes, put it in
this car and drive away based on that. That's the
company that he is built with a lot of other
people there, obviously, but that was a very disheartening moment
in my life.
Speaker 5 (20:04):
I'll tell you that.
Speaker 3 (20:05):
To watch that, all right, Tom Gordon appreciate that.
Speaker 2 (20:07):
And Jo Schman, I assume you consider yourself still an
employee although you are not going to work every day.
Speaker 4 (20:14):
You're unpaid administratively, right, Yeah, absolutely, and we plan on
being back, you know, make no mistake about it.
Speaker 2 (20:21):
Yeah, I understand that feeling. Let us go to Paul Quigley.
Paul worked at mast market Basket also for many years.
Paul quickly, Welcome to night Side. Paul, tell me how
long how many years did you put in at market Basket?
Speaker 7 (20:38):
Hey, Dan, thank you for taking my call. I am
I'm a forty four year veteran of market Basket.
Speaker 3 (20:45):
Hire people and they keep them, huh, I mean that's.
Speaker 7 (20:47):
Well, this is our culture, Dan, and it kind of
disturbs me. If you look at before May twenty eighth,
you had a company that was running on all cylinders,
with great future plans and news stores on the horizon
and great programs going on, and yet this board of
directors thought it was prudent to just take the top
echelon of our company and just chop it off. And
(21:11):
it's just unbelievable that they would think that that was
the right thing to do on a company that is
so successful. Mister Gordon works seven days a week, as
does Joe Schmidt. You work seven days a week, and
to take these people and mister Demules out just degrades
our company. And it's extremely disturbing.
Speaker 3 (21:29):
So you did not receive the letter.
Speaker 2 (21:33):
A person who lives in the Cape and has I
guess a similar name to you, receives this letter.
Speaker 3 (21:39):
Tell us about the letter. It was not what you
call warm and fuzzy.
Speaker 7 (21:43):
Well, I was working on July fourth. I went into
the office around five point thirty in the morning, and
one of my colleagues grabbed me about twenty minutes later
and asked me to come into the conference room and
Michael Kettenback, who's the son of one of the sisters,
had a letter in front of him and he hand
delivered that to me. And as I look at the
(22:06):
letter later, I see this address on the letter, and
I'm like, what is this address? So I googled it
and I realized that that was a different Paul Quickley
that lived out on the Cape. But I mean, just
the fact that they would even give me the letter
on the fourth of July when there was nobody in
the office, in my opinion, was pretty cowardly because if
(22:27):
they had done that with all our associates in the office,
we would have had a pretty good disturbance there. I mean,
people would have been up and arms, And it just
just goes to show you how disconnected this board is.
Speaker 2 (22:40):
And So the person, the person who terminated you personally,
how long had he worked.
Speaker 3 (22:46):
At the company?
Speaker 5 (22:48):
I don't know exactly. Maybe Joe knows.
Speaker 6 (22:53):
John Michael.
Speaker 4 (22:54):
Yeah, Michael's been with the company for you know, maybe
I'm estimating, but maybe twenty years.
Speaker 3 (23:01):
Okay, So he's been there a while. Did he.
Speaker 2 (23:05):
Soften the blow at all Paul and say, gee, Paul,
know you've been here a long time. And I don't
like path to do this, but I've got to, you know,
give you this letter in person, and I hope wish
your success going forward.
Speaker 5 (23:18):
I don't know any of that.
Speaker 7 (23:19):
I don't know, But getting a letter to tell you
you're being put on suspension for three months, I don't
know how that's a soft blow. I mean, this is
a gentleman who's a supervisor of the deli and kitchen department.
I feel like we're on the same plane, other than
the fact that his mother owns twentieth son of the company.
Giving me a letter telling me that I wasn't doing
(23:41):
my job, and I was pretty furious.
Speaker 3 (23:44):
Yeah, I can I can understand that.
Speaker 2 (23:46):
And were you told this is your last day, take
take your personal belongings and not come back.
Speaker 3 (23:54):
Is that? Is that?
Speaker 7 (23:55):
The message that was the letter asked you to basically
tells you that you're on the bench till my letter
said till September thirtieth, And I don't know what the
significance of that date is. But just like Joe and Tom,
I plan on going back to that office and working
and continuing my career. But I think the Border Directors
needs to take a hard, good look at the success
(24:16):
of our company and what they've just done.
Speaker 2 (24:19):
From your perspective, has the company continue to move it along?
I mean pretty well in the last six weeks or so.
Has it's top Well, when.
Speaker 7 (24:33):
You talk about our store directors, there's none better out there.
I mean, we have people that are running these stores.
But when you talk about the culture of our company
and what's going on inside of our corporate office right now,
where there's a lot of suspicion, there's a lot of
people that are uneasy. I mean, this is a beloved
CEO and afat demolus. I mean, you don't just take
(24:55):
them out of a company and think people are going
to be okay. People are upset. There was a lot
of private meetings going on, what can we do, what
can we Is there anything we can do to help
to get him back? And and it just, uh, it's
just very disappointing that this board thought that they were
doing the right thing, don't. I don't know what they
were thinking.
Speaker 2 (25:14):
All right, Well, Paul, I appreciate your calling in, and
I wish your best of luck and hopefully you're you're
you're you're obviously in a radio tonight. I'm sure that
the powers that are currently in place. There are not
going to be happy with you or with Joe or Tom.
But I think it sounds to me like your men
(25:36):
of principle and you're doing what you think is the
right thing.
Speaker 3 (25:39):
So thank you for taking your time tonight.
Speaker 7 (25:41):
Hey, thanks for having me on. Dan And our word
is loyalty. You know we have loyalty to our company.
We always have and UH and I continue.
Speaker 3 (25:49):
To be loyal. Well.
Speaker 2 (25:50):
I think loyal and authenticity are two great qualities in
any employee.
Speaker 3 (25:54):
Thank you, Thank you, Paul. I appreciate it very much.
Speaker 5 (25:56):
All right, good night, good night.
Speaker 2 (25:58):
Let me go to Steve, who is in Mary Mack,
New Hampshire. Steve, you're next on night Side with my
guest Joe Schmidt and Tom go ahead, both long term
employees from market on market Basket at market Basket who
have been placed on administrative leave along with I guess
Paul Quickley, go right ahead.
Speaker 5 (26:17):
Steve Dan, thanks for taking my call. Welcome back and
happy belated birthday. I just want to I just want
to say that number one, I know RDT very well.
I went to high school with him. I went to
the protest eleven years ago. In August of twenty fourteen.
I shop at that store multiple times every day. I
(26:37):
talked to the managers, I talked to everybody there, and
every the customers love Ardt. The employees love him. However,
you know, even though they love him, apparently the root
of the problem is that Artie is running his own
I'm sure he may even be listening to you. I
don't know what they're telling me. Is that there that
(26:59):
he's running his own show and he's not communicating with
the board on major decisions relating to real estate and
other transactions. And it really ticked off the board. So
they feel like they've been slighted. And unfortunately, both you,
Joe and Tom, you know, you're along for the ride,
and they're taking it out on everybody that knows him.
(27:21):
So my question would be, why can't everybody get together
and put together a compromise. I mean, you know, nothing
is good is going to happen if RDT leaves and
his executives leave Shaw's and Hanffers and Walmart. They're all
salivating on anything that goes wrong with Market Basket. So
(27:42):
I would love to see or hear what you have
to think about the possibility of a compromise before that
arbitrary date of September thirtieth.
Speaker 2 (27:51):
Okay, that's a great question. Let's see if Joe or
Tom want to take it on. It does seem to
me like this much the ground here, But let's see
what Tom and Joe say. Go ahead, gentlemen, who who
like to go first?
Speaker 3 (28:04):
Joe?
Speaker 4 (28:05):
Yeah, so this is Joe. So I mean, basically, you know,
this assertion that mister Demules hasn't been given the board
information is just not true and that needs to be
stated and emphatically stated. You know, these these gentlemen that
are on the board of Director Collins Patrick in the keys,
they're all private equity guys, you know, and private equity
(28:26):
adventure capitalism has to do with, you know, potentially giving
shares of the company to outsiders because we don't have
stock offerings, and so they may come in and promise,
you know, big dividend payoffs to the to the shareholders
of the company. But there's a cost to that, right
and and and basically, mister de Moulz wants to protect
(28:48):
the company for the customers, associates, vendors, and the shareholders ultimately.
But this assertion that he hasn't cooperated or given them
the information they're looking for is not true, and the
record will reflect.
Speaker 3 (28:58):
That is before we get Tom in here. Is it
your sense, Joe, that they're going to try to take
this company public?
Speaker 4 (29:08):
You know, I don't know that, but I'm reading the
tea leaves a little bit and looking at the background
of these individuals.
Speaker 2 (29:14):
When you say shareholders, I assume that's you're talking about
some some sort of a public offering.
Speaker 3 (29:21):
It's a privately held company, right.
Speaker 4 (29:24):
Yeah, So I'm not saying that they're going to bring
the company public, but I am saying that these the
mindset of these individuals on the board of directors is
very much in that, you know, public offering mentality, and
I don't have an indication that that's what they're looking
to do. However, when you when you are in those circles,
you know, and you're talking about big distributions of cash,
(29:46):
there's no reason to think that they wouldn't do some
type of private equity arrangement down the road. So those
things remain to be seen, So I don't want to
make allegations that they are on However, you know, this
company has always been well protected under the leadership of
mister Demola's and his team, and we want that to continue.
Speaker 2 (30:06):
Okay, let's get Tom, Tom Gordon, go right ahead, Tom.
Speaker 4 (30:10):
Yeah, I think you know, as in addition to what
Kio said about the the board and whatnot, I think
this is also a serious con consideration about succession. Sixty
percent shareholders do not want this children running this company
in the future, and that's a big part of this.
Speaker 2 (30:28):
So so it sounds to me like, you know, Steve's
hope of a compromise, get everybody around the table and
get this resolved. From where you guys are spitting and
see Steve, if you get you can jump in here
as well.
Speaker 3 (30:44):
You don't see that as as a likely outcome.
Speaker 5 (30:49):
It takes two people to come to a compromise, and
if one person or one party doesn't want to work
with him, then it's not going to happen. I don't
know if the damage has already been done because of
airing the dirty laundry in the press. You know, I
would like to see everything handled behind closed doors instead
of out in the press. I don't know how Tom
(31:12):
and Joe feel about that, but that's from it.
Speaker 3 (31:16):
Obviously they did not run to the media.
Speaker 2 (31:19):
They I mean they it's been you know, six or
seven weeks now, and a decision was made to talk
about this publicly, and I'm glad they chose Nightside.
Speaker 3 (31:29):
I'm Steve. I appreciate you, Carl, thank you very much.
Speaker 5 (31:31):
Thanks Dan, thank you very much.
Speaker 3 (31:33):
Royal customer who feels that this is not going well.
We came back.
Speaker 2 (31:37):
We're going to talk with a gentleman who wrote a documentary,
actually produced, I believe, a documentary about market Basket, Tom Bennett.
We'll get to him right after this break. Here on Nightside,
my guest Joe.
Speaker 3 (31:51):
Schmidt, Tom Gordon.
Speaker 2 (31:52):
Still market Basket employees chose the director of operations, Tom
the director of grocery operations, but they have been placed
on paid administrative leave. And now a date of September
thirtieth has been mentioned a couple of times. I suspect
that there will be some resolution by then.
Speaker 3 (32:14):
That's still two and a half months away.
Speaker 2 (32:15):
Back on Nightside, right after this, you're on night Side
with Dan Ray on WZ Boston's news radio. Back to
the Phone's going to talk with Tom Bennett. Tom, you
wrote a documentary or produced the docum. This was a
video documentary I assume on market Basket.
Speaker 6 (32:33):
Yes, I co produced, wrote, and edited. Maybe so.
Speaker 2 (32:38):
As someone who has looked at this, I assume you
incorporated what was going on back ten or so years ago.
Did this development surprise you or is this just something
that did you anticipated?
Speaker 6 (32:56):
Completely surprised. I mean, although the motivations seem like they're
early similar, right, Yeah. I spent over six hundred hours,
you know, you know working on this film, and as
a businessman myself, you know somebody that's you know, started
and you know, sold a business, and where it was
to me, it was almost like it wasn't just an
(33:18):
incredible opportunity to work on this film and tell the story,
it was an opportunity to it was like one of
the best business school the opportunities you could have, because
you learned about what it takes to cultivate that kind
of loyalty not only in the in the employees, in
the associates, but in the customer base. I mean, I
was just astonished. I mean, I've been a customer for
(33:38):
thirty five forty years, I guess. But you know the
thing that you know, you know, Paulin and excuse me,
Tom and Joe are talking pretty extensively about the culture
and how the culture is the market basket. But the
thing that the epiphany for me and working on the
film was that market basket isn't it is as important
to the culture of Newingsland as you know, lobster roles
(34:03):
and and and it's sports teams. I mean, it's just
it's just it's just it's just in the d n A,
you know. I mean, uh And I think I think
the thing that that that was was really interesting about
that was learning about the history. I mean, you know,
Arthur got those values from his father and his grandfather,
you know, who understood that feeding families and having that
(34:27):
close connection to the community, you know, that Greek ethnic
community that that on Dummer Street that you know, where
the first doors were started. That's what I goes back to, right,
I mean, that's why you don't have you know, you
don't have automated checkouts and things like that, because they
understand that personal connection, right.
Speaker 3 (34:47):
And that's one of the.
Speaker 2 (34:47):
Things that I love best about about market Pasket is
that there are no automatic checkout machines. They're they're employing
people and people who were are learning of America, which
is which is business.
Speaker 8 (35:04):
Yeah, go ahead, yeah, it's okay, No, it's just going
to say, I mean, you know, just to you know,
a couple of other things I learned. I mean, there's
things that I don't think customers realize about this business, right,
I mean, you know, I think one of the things
that Arthur just a couple more points and I'll let
you get sid of color, but I think one of
the things that Arthur understands about the food industry is that,
(35:25):
you know, I mean, the reason that their number, you know,
one overall in value and number two in the country
is because he understands that in order to make that happen,
his associates have to have a vested interest in what's
going on. He has to give back the community, right
because it's such a low margin business, right. And and
he's yet he's cultivated a business model that that paid
(35:46):
off one point, that took a billion six in debt,
paid it off in ten years, grew at another twenty stores.
By every objective measure, this guy has crushed it. And
if you're if you if you own twenty percent of
that that enterprise, and all you have to do is
profit sharing checks the only motivation more money.
Speaker 2 (36:02):
As far as hey, Tom, I hate to do this
to you, but I got to wrap it up with
my guests. I appreciate you, and we'll keep in touch
with you.
Speaker 6 (36:11):
Thank you very much, Thanks very much, take care.
Speaker 2 (36:13):
Yeah, okay, Joe and Joe Schmid, Tom Gordon, thank you
for your courage, uh to come on the program. I
hope that the dowers to the benefit and that there's
some sort of way in which everybody can get back
on the team, because I don't want to lose Market
Basket for what it is. I don't want to see
(36:33):
it change. I don't want to see it sold. I
don't want to see it, uh, you know, broken up
in any way, shape or form. And I would just
ask you if both of you would keep in touch
with us, and we'll you know, we'll have you back
if you'd like. We'll also have We've invited the folks
who are running market Basket now, the folks who discharged you,
folks put you on administrative leave with pay.
Speaker 3 (36:56):
Let that get their side of the story.
Speaker 2 (36:58):
I don't understand them motivations, but you have made a
very compelling case tonight for the professionals, and that both
of you epitomized. So I appreciate you taking the time
to be with us. Then I give you a quick
final word of either if you would like it.
Speaker 4 (37:13):
Yeah, Dan, we want to thank you for having us
on your show. You know, everything will stay the same
when they bring mister de Mooes back and the leadership
team and mister Demos is a tremendous leader and even
a better person, and that's why we're standing up for
it and that's what needs to happen. So again, we
appreciate the opportunity to speak with you this evening. So,
you know, Dan, one thing I'd like to add to
a lot of references back to twenty fourteen. You know,
(37:35):
the boss is the same guy was in twenty fourteen.
The players on the other side have changed. Boston the
same Menia was back there.
Speaker 2 (37:42):
Yeah, okay, Well, I think you've major points and made them.
Well gentlemen, keep away to follow this drama. Thank you
very much, love to have you back.
Speaker 4 (37:49):
Thanks so much, Thanks, thank you, good night.
Speaker 2 (37:52):
When we get back, we to talk about a different drama,
one that's going on in Newton right now, dealing with
the no Nantum section of that commune and the elimination
of a strip down the middle of this road, very
special road, Adams Street, which commemorates the history and the
culture of the Italian American community, the red, white, and
(38:15):
green striped which have to this moment yet to be restored,
and their big festival begins on Wednesday. We will come
back with some interesting guests on that topic right after
the break here on Nightside.
It's Night Side with Dan Ray on wv Boston's news radio.
Speaker 2 (00:07):
I think we're gonna Stan Watkins, Welcome back everyone. As
we move into our talk portion of our program, we're
going to focus on a story that most of you
should be fairly familiar with, UH, and that is the
continuing drama involving the my favorite supermarket market basket. Market
Basket just a couple of months ago placed it's legendary
(00:34):
CEO Arthur Demoulis and a handful of employees on paid leave.
Speaker 3 (00:39):
UH.
Speaker 2 (00:40):
There was a it's a family board of directors.
Speaker 1 (00:45):
UH.
Speaker 2 (00:45):
And we're going to get into how this happened, but
more importantly, we're going to talk about what's been going
on with the two I'm going to use the word
veteran Market Basket employees, and I think I can use
that term pretty pretty pretty clearly. Joe Schmidt has been
(01:07):
the director of operations at market Basket for nearly forty years,
so we're going to call it thirty nine. Joe Schmidt,
how are you tonight?
Speaker 4 (01:16):
Very good?
Speaker 5 (01:16):
Dan?
Speaker 4 (01:16):
How are you this evening good?
Speaker 2 (01:18):
What did you do for market Basket or with market
Basket for nearly four decades? What does the director of
Operations title mean so so, as.
Speaker 4 (01:29):
You mentioned, I'm the director of Operations and that has
a vast array of responsibilities pertaining to, you know, the
day to day operations of the stores, the day to
day operations of the company, working with the department directors,
and you know, being part of the support team for
mister Demolas, who has run an exceptional company and you know,
has the company performing on track.
Speaker 2 (01:51):
There are if I'm not mistaken about ninety Demolis's grocery stores,
is you know, is that the the approximate number?
Speaker 3 (02:01):
Or am I underestimating that number?
Speaker 4 (02:03):
No, You're right on the money with that ninety locations.
And you know, under mister de Moolla's leadership, the company
has grown exponentially and you know, everything was firing an
off sylliness. You know, customers, associates and business partners all
being taken care of and benefiting greatly from the model
and the culture of Market Basket.
Speaker 2 (02:23):
And of course there was the incident of the whole event,
the drama ten years ago where he lost control of
the company and there was there was really a revolution
amongst the employees and uprising and people stopped going there.
And in twenty fifteen, was sort of a water shed
(02:44):
year for for you know, market Basket and and for
mister Demulis Arthur T. Demulis rd T, as he is
so affectionately called. So let me also bring into the
conversation Tom Gordon, not a former relief picture for the
Red Sox, but Tom Gordon, who's the director of grocery operations.
(03:07):
And he actually out distanced Joe. Joe is a relative
newcomer in this company. I've been worked there thirty nine years.
Tom is just short of fifty years. You're thinking of
making a career of this, Tom, I would I would
assume I.
Speaker 4 (03:24):
Was thinking of making a career. But yeah, which I
was pretty good too. It's about six weeks ago.
Speaker 3 (03:29):
Yeah, yeah, So.
Speaker 2 (03:31):
When the the board of directors basically and it's it's
an intramural fight that's going on here. It's an interfamilial
fight because RDT owned twenty eight percent. It's privately held company,
(03:52):
you're not publicly traded, right right, rrect Okay. And there
are three of his sisters, each of whom owned twenty percent,
and they actually stood by him fifteen years ago when
there was that first effort to oust him and it failed.
(04:17):
But the three sisters sort of changed their attitude towards
Arthur t and it was there sixty percent of the
ownership of the board that really led to his dismissal.
If that, I don't know what words we want to
use here. I mean, you two gentlemen are at this
(04:38):
point on what's called I guess administrative leave. Is that
you're being paid, but you're not being allowed to work.
I don't understand why this would be done to two
people who have given their life's blood to the company.
To either one of you want to respond to that obvious.
Speaker 4 (04:57):
Question, Yeah, sure, you know. I think what we're looking
at here is is authors three sisters, you know, want
to extract more cash from the company, and quite frankly,
you know, mister Demolls is the gatekeeper of the entire
organization and making sure that you know, the customers are
taken care of, the associates are taken care of, the
business partners are taken care of, and everybody benefits them
(05:19):
from that, and the shareholders a company, I'll benefit from
it as well. So you know, quite frankly, the sisters
wanted to remove mister Demoles from his post, and they
were actually out talking about it. Publicly as early as
a year ago. And you know, with the thought process
of installing one of his sisters sons, Michael Kettenbach, who's
the Deli director, into the into the position of CEO,
(05:42):
I believe in the future. So it's it's kind of
a succession issue in terms of, you know, them putting
in a different family member into the company and excluding
mister Demollah's son and daughter from potentially having that position
as well. And so we call it a coup, you know,
which started with the removal of Terry Colton and Bill Shay.
(06:05):
Bill Shave was the chairman of the board for a
long time. He was removed from that position. Terry Copton
was taken off the board of directors and three individuals
were instilled onto the board Stephen Collins, Jay Hatchigan and
Michael Keyes.
Speaker 2 (06:18):
Now did the board of directors each have one vote
or did they vote the amount of shares or whatever
or ownership interest, because at this point it would seem
to me that if Arthur T's sisters owned sixty percent
of the company between the three of them, no matter
how many directors there were, they owned sixty percent of.
Speaker 4 (06:38):
The company, right, so their board members that they basically
put onto the board of directors essentially have the controlling interest.
Speaker 2 (06:48):
So okay, so the sisters are not on the board
of directors. They they have the financial status, but they
were not people who actually had to hast to vote.
Speaker 3 (07:00):
Is that is that what you're telling me?
Speaker 6 (07:02):
That's correct?
Speaker 4 (07:03):
So essentially they picked the board members to meet their
objective of I was seeing their brother from the leadership position,
and that's why we're in the situation where we are.
So as a result of that, the board had their
marching orders to remove mister Demola's and top management tom myself,
you know, Madeline Ta Jeron Lewis, who is author's brother
(07:23):
in law. So it's kind of take the family out,
so to speak.
Speaker 2 (07:27):
So I don't want to get too deep into the names,
because we're talking about you people whose names are not
common knowledge.
Speaker 3 (07:36):
I want to deal with the issue of.
Speaker 2 (07:40):
Is there any way It seems to me like this
is an irreconcilable conflict. I mean, if the sisters have control,
what can mister Demoulis do or can folks on your
side of the field do? I mean, if they follow
the rules and regulations of the Eye laws, have you
(08:03):
all lawyered up at this point, are where do we
spend in that regard?
Speaker 4 (08:09):
Yeah, this various council involved. Certainly, when we're talking about
an eight billion dollar company, you know, the company is
in the best hands of mister Demolis, has proven track
records shows that you know. In fact, the company was
named in the dun Humbry Report as number two in
the nation and number one overall in price. So it
really doesn't come down to you know, performance, It really
(08:30):
comes down to just a personal situation and a family situation.
And so when you ask, is it's something that's able
to be recovered. While certainly the the the prudent thing
to do would be the reinstate mister Demolis to his
leadership position that he's been successful, which is benefiting all
the shareholders and the customers and associates, and so anything
(08:52):
can be reversed. But right now it's going down a
path of destruction.
Speaker 2 (08:56):
And I'm going to take a quick break here. My
guests are two long term employees, more than employees, very
important directors of operations and directors of grocery operations, Joe
Schmidt and Tom Gordon. Between the two of them, they
have spent given about ninety years of their two lives
to this company, and they are now on paid administrative leave.
(09:20):
I assume that your presence on the program tonight is
not going to thrill those who have put you on
paid administrative leave. And when I come back, I want
to ask you how concerned are you by just doing
this show you might incur even more wrath from those
(09:40):
who now control the future of Market Basket. My name
is Dan Ray. If you'd like to join the conversation
and talk to two men who have helped, along with
Arthur Demulis, Arthur T. De Mulis, to create this amazing,
amazing grocery chain, my favorite chain, and that's why I'm
(10:00):
interested in it. There are a lot of great grocery stores,
but I think that in terms of the way employees
have been treated in the past, the way customers have
been treated, I think.
Speaker 3 (10:14):
That no.
Speaker 2 (10:18):
Company is better than Demulis. There are companies that are
that appeal to a different clientele. Roach Brothers is another chain. Again,
I hate to use the word chain, but that I
truly respect, again a family owned company, uh as opposed
to some of the companies that are owned by these
corporate Gouiat's from around the company, but from around the country.
(10:43):
But we'll get to all of that if you like
to join the conversation with these guys. These two gentlemen
are doing tonight, I think take some courage, uh, and
they certainly have helped create, along with Arthur Demoulis, a
great company in market Basket.
Speaker 3 (10:58):
Six thirty six.
Speaker 2 (11:02):
We'll be right back on Night's side with your calls
and comments coming back, as well as more conversation with
Tom Gordon and Joe Schmidt, formerly of Market Basket.
Speaker 1 (11:12):
It's Night Side with Dan Ray, Boston's news radio.
Speaker 2 (11:18):
Talking with two veterans I think I can say veterans
of careers at market Basket, Joe Schmitt, director of operations
for thirty nine years and Tom Gordon, director of grocery
operations just short of fifty years. Gentlemen, let me ask
you this question. I want to ask it as politely
as I can. Why are you doing this interview with
(11:40):
me tonight? I assumed that the folks who are now
running my acro basket are not going to be happy
with you be here. We did invite them to come
on tonight or to come on another night, and they
chose not to. If they want to. We'll give them
an hour you know, later on this week. But this
is not going to make them happy. Why do this, you.
Speaker 4 (12:03):
Know, Dan, This is about doing the right thing and
standing up for the guy who's.
Speaker 3 (12:09):
This is Joe. This is Joe Schmidt, the director of operations.
Speaker 4 (12:11):
Will have no This is Tom going talking about Tom.
Speaker 3 (12:14):
Okay, go ahead, Tom, I'm sorry.
Speaker 4 (12:18):
This is about standing up for the boss that we've
worked for. I've worked for my whole life, knowing what
kind of a man is, what kind of companies run,
and uh, you know, to be To receive a letter
from three guys that I spent a total of five
minutes with, probably prior to them giving by my letter
and putting me on the administrative league accusing us of organizing
(12:38):
a work stoppage is is a little disheartening. I think
that after fifty years, I'd be organizing a work stoppage
against the guy that I'd.
Speaker 5 (12:46):
Love working for for almost fifty years.
Speaker 4 (12:49):
And the fact that that that perception is out there
amongst the company, that perhaps mister Schmidt and myself and
the boss and madel Mpia have been organizing something like
that is preposterous and it's it's uh it's quite troubling.
And like I said, at some point, it's not about
worrying about my salary. It's about doing what's right and
(13:11):
the ships will follow they fall.
Speaker 2 (13:13):
Well, said Tom Joe. You, I assume you must feel
the same way. I'd love to hear you articulate your
viewpoint on this.
Speaker 4 (13:20):
Yeah, there's no question. I mean, when it comes down
to it, it's important to protect the culture of the company.
You know, this affects so many customers, so many associates,
business partners, and it's something that you know, if this culture,
which is very special is changed in the future. You know,
even though Jay Hatchet and chairman of the board says
nothing's going to change, well, things have already changed and
(13:42):
changed dramatically. And so that's why, you know, you take
a stand for what you believe in. And and this
is bigger than us and being a part of the
market basket and being fortunate to be a part of
the team for so many years. It's a special place
to work. We want to help preserve that. You know,
we will put on the bench for for allegations and
you know, and basically the board hired a law off
room by the name of Quinn Emmanuel that you know,
(14:04):
and basically they're trying to come up with something so
they can justify removing us. So there's a bigger picture here.
You have a couple of people. You know, Jay Hatchigan,
who's you know, he works at Gunderson Detmer and Boston.
You know, he advises clients on private and public market
acquisitions and venture funds. You know Steve Collins, he's a
private equity guy, and Michael Keys is an acquisition guy
(14:27):
in real estate. So it's you know, you've taken the
Wall Street mentality and trying to infuse it into the
Main Street mentality and market path has always been about
people culture and protecting that culture. And so that's why
we're here today.
Speaker 3 (14:40):
What are you?
Speaker 2 (14:41):
Let me start with you, Joe, and then we'll go
to news at the bottom they are get the phone
calls immediately thereafter.
Speaker 3 (14:46):
What are you.
Speaker 2 (14:47):
Folks hearing from folks inside at this point? Has the
culture changed in the last you know, six to eight weeks,
the cash registers just as busy of the parking launch
just is full. Do people have they perceived differences that
are that are going on? Or is this again simply
(15:08):
and inter familial dispute. Uh, and you guys are just
caught in the crossfire.
Speaker 4 (15:15):
Well, you know, to answer your question, the answer is yes,
the culture has changed already, and in fact, right at
the corporate office and a gentleman by the name of
Paul Quigley, who was one of the supervisors. It always
used to be a place at the corporate office that
if anybody had a question or anywhere in the company,
that they could pick up the phone. They could go
and see somebody, speak to mister Demolz, speak to Tom,
speak to myself and ask a question. Now, if you
(15:37):
ask a question about what's going on with the leadership,
what's going on? When are the guys coming back?
Speaker 3 (15:42):
When?
Speaker 4 (15:42):
When is the team coming back? Yes, silenced immediately, And
that's there's a couple of instances that you know, Adam
Desen and Adam and Esteban Alvarez and Paul Quigley just
recently was put on the bench because they spoke out.
And we're asking questions and support of mister Demoles And
you know the way, we'll.
Speaker 2 (15:59):
Be caller during the next half hour. He's actually number
one here, so we will get to him. He's the
gentleman who they sent a letter to and they were
sloppy and sending the letter, and it didn't go to
the employee. It went to a customer of a similar name.
I read that story over the weekend in one of
the Boston newspapers.
Speaker 4 (16:19):
Correct correct, Yeah, yeah, they said, I don't know where
they I don't they just what in some kind of
Google search or some find somebody's search. But they sent
it to the wrong Paul quickly, and he wasn't too
happy about receiving a letter. And I don't think Paul
was too happy that is his fate with the company
was sent to the wrong person, and before you know
it showed up on the talk show and being the
(16:42):
letter being read. So I think Paul's get a serious
concern with that as well. And there's a there's a man,
a man that's been with the company for forty years,
and they couldn't even do their due diligence to go
to the payroll department and ask for the man's proper address.
So now you have a customer that's down on the
cape involved in his own personal work working matter. It's
just it's not right. And it goes to show you
how disconnected this board of directors is from the company.
Speaker 3 (17:04):
Well, I can just.
Speaker 2 (17:05):
Tell you that if that if I received a letter
which was incorrectly sent to the customer of a similar
name that said you would differ to go on the
property you're paying from the property, I'd say, great. You
know I'm only a customer. You want to ban me,
go ahead, boy, talk about a rookie mistake. Let's take
(17:25):
a break, gentlemen. We got the news and we're going
to get to phone calls. I promise I only have
one line open, and that's six one, seven, nine thirty.
You got to dial quickly. We'll get you in and
we're going to talk about this until ten o'clock. Coming
back on Night Side with my guests Joe Schmidt and
Tom Gordon, between the two of them, nearly ninety years
(17:47):
working for Market Basket and shown the door pretty quickly,
pretty summarily. I don't know that's the way that employees
should be treated. Well, as a matter of fact, I
know that is not the way employees should be treat it.
Back on Night's Side after.
Speaker 1 (18:01):
This, it's Boston's News Radio with us.
Speaker 2 (18:09):
Are two I don't want to say former Market Basket
employees because they are on paid administratively. Joe Schmidt, director
of operations for thirty nine years, Tom Gordon, director of
grocery operations for nearly fifty years.
Speaker 1 (18:26):
Uh.
Speaker 2 (18:26):
And we're going to be joined now by another former
Market Basket employee. And again I say the word I
use the word former. But there is still to the
best of my or at least, mister Joe Schmidt and
Tom Tom Tom Morgan is still.
Speaker 3 (18:48):
Tom Gordon.
Speaker 2 (18:49):
Excuse me, I'm sorry, I'm sorry, Tom Gordon are still
on paid They on paid administrative leave.
Speaker 3 (18:58):
How do you consider it? Before I go to Paul Tom,
how Tom Gordon, do you can see yourself.
Speaker 2 (19:06):
The current employee by virtue of the fact that you're
unpaid administrative leave.
Speaker 4 (19:10):
Yes, I still consider myself an employee of the company,
and I hope to continue being an.
Speaker 6 (19:15):
Employee of the company.
Speaker 4 (19:16):
But like I said, the the the manner of which
we were we were put on leave was very disappointing
and uh, without any fact basis and and so you
know it is just as a side note, Dan to
sit there for my office which is on the on
the front wall of the building, and to watch after
the moles and his children have to take all their
(19:38):
personal effects out of the office and kind of schleve
them down the sidewalk in front of their employees.
Speaker 6 (19:46):
You know, all the people that.
Speaker 4 (19:47):
Worked at the office. Was was completely uncalled for. I
was horrified to sit there and watch the boss have
to take this stuff out in boxes, put it in
this car and drive away based on that. That's the
company that he is built with a lot of other
people there, obviously, but that was a very disheartening moment
in my life.
Speaker 5 (20:04):
I'll tell you that.
Speaker 3 (20:05):
To watch that, all right, Tom Gordon appreciate that.
Speaker 2 (20:07):
And Jo Schman, I assume you consider yourself still an
employee although you are not going to work every day.
Speaker 4 (20:14):
You're unpaid administratively, right, Yeah, absolutely, and we plan on
being back, you know, make no mistake about it.
Speaker 2 (20:21):
Yeah, I understand that feeling. Let us go to Paul Quigley.
Paul worked at mast market Basket also for many years.
Paul quickly, Welcome to night Side. Paul, tell me how
long how many years did you put in at market Basket?
Speaker 7 (20:38):
Hey, Dan, thank you for taking my call. I am
I'm a forty four year veteran of market Basket.
Speaker 3 (20:45):
Hire people and they keep them, huh, I mean that's.
Speaker 7 (20:47):
Well, this is our culture, Dan, and it kind of
disturbs me. If you look at before May twenty eighth,
you had a company that was running on all cylinders,
with great future plans and news stores on the horizon
and great programs going on, and yet this board of
directors thought it was prudent to just take the top
echelon of our company and just chop it off. And
(21:11):
it's just unbelievable that they would think that that was
the right thing to do on a company that is
so successful. Mister Gordon works seven days a week, as
does Joe Schmidt. You work seven days a week, and
to take these people and mister Demules out just degrades
our company. And it's extremely disturbing.
Speaker 3 (21:29):
So you did not receive the letter.
Speaker 2 (21:33):
A person who lives in the Cape and has I
guess a similar name to you, receives this letter.
Speaker 3 (21:39):
Tell us about the letter. It was not what you
call warm and fuzzy.
Speaker 7 (21:43):
Well, I was working on July fourth. I went into
the office around five point thirty in the morning, and
one of my colleagues grabbed me about twenty minutes later
and asked me to come into the conference room and
Michael Kettenback, who's the son of one of the sisters,
had a letter in front of him and he hand
delivered that to me. And as I look at the
(22:06):
letter later, I see this address on the letter, and
I'm like, what is this address? So I googled it
and I realized that that was a different Paul Quickley
that lived out on the Cape. But I mean, just
the fact that they would even give me the letter
on the fourth of July when there was nobody in
the office, in my opinion, was pretty cowardly because if
(22:27):
they had done that with all our associates in the office,
we would have had a pretty good disturbance there. I mean,
people would have been up and arms, And it just
just goes to show you how disconnected this board is.
Speaker 2 (22:40):
And So the person, the person who terminated you personally,
how long had he worked.
Speaker 3 (22:46):
At the company?
Speaker 5 (22:48):
I don't know exactly. Maybe Joe knows.
Speaker 6 (22:53):
John Michael.
Speaker 4 (22:54):
Yeah, Michael's been with the company for you know, maybe
I'm estimating, but maybe twenty years.
Speaker 3 (23:01):
Okay, So he's been there a while. Did he.
Speaker 2 (23:05):
Soften the blow at all Paul and say, gee, Paul,
know you've been here a long time. And I don't
like path to do this, but I've got to, you know,
give you this letter in person, and I hope wish
your success going forward.
Speaker 5 (23:18):
I don't know any of that.
Speaker 7 (23:19):
I don't know, But getting a letter to tell you
you're being put on suspension for three months, I don't
know how that's a soft blow. I mean, this is
a gentleman who's a supervisor of the deli and kitchen department.
I feel like we're on the same plane, other than
the fact that his mother owns twentieth son of the company.
Giving me a letter telling me that I wasn't doing
(23:41):
my job, and I was pretty furious.
Speaker 3 (23:44):
Yeah, I can I can understand that.
Speaker 2 (23:46):
And were you told this is your last day, take
take your personal belongings and not come back.
Speaker 3 (23:54):
Is that? Is that?
Speaker 7 (23:55):
The message that was the letter asked you to basically
tells you that you're on the bench till my letter
said till September thirtieth, And I don't know what the
significance of that date is. But just like Joe and Tom,
I plan on going back to that office and working
and continuing my career. But I think the Border Directors
needs to take a hard, good look at the success
(24:16):
of our company and what they've just done.
Speaker 2 (24:19):
From your perspective, has the company continue to move it along?
I mean pretty well in the last six weeks or so.
Has it's top Well, when.
Speaker 7 (24:33):
You talk about our store directors, there's none better out there.
I mean, we have people that are running these stores.
But when you talk about the culture of our company
and what's going on inside of our corporate office right now,
where there's a lot of suspicion, there's a lot of
people that are uneasy. I mean, this is a beloved
CEO and afat demolus. I mean, you don't just take
(24:55):
them out of a company and think people are going
to be okay. People are upset. There was a lot
of private meetings going on, what can we do, what
can we Is there anything we can do to help
to get him back? And and it just, uh, it's
just very disappointing that this board thought that they were
doing the right thing, don't. I don't know what they
were thinking.
Speaker 2 (25:14):
All right, Well, Paul, I appreciate your calling in, and
I wish your best of luck and hopefully you're you're
you're you're obviously in a radio tonight. I'm sure that
the powers that are currently in place. There are not
going to be happy with you or with Joe or Tom.
But I think it sounds to me like your men
(25:36):
of principle and you're doing what you think is the
right thing.
Speaker 3 (25:39):
So thank you for taking your time tonight.
Speaker 7 (25:41):
Hey, thanks for having me on. Dan And our word
is loyalty. You know we have loyalty to our company.
We always have and UH and I continue.
Speaker 3 (25:49):
To be loyal. Well.
Speaker 2 (25:50):
I think loyal and authenticity are two great qualities in
any employee.
Speaker 3 (25:54):
Thank you, Thank you, Paul. I appreciate it very much.
Speaker 5 (25:56):
All right, good night, good night.
Speaker 2 (25:58):
Let me go to Steve, who is in Mary Mack,
New Hampshire. Steve, you're next on night Side with my
guest Joe Schmidt and Tom go ahead, both long term
employees from market on market Basket at market Basket who
have been placed on administrative leave along with I guess
Paul Quickley, go right ahead.
Speaker 5 (26:17):
Steve Dan, thanks for taking my call. Welcome back and
happy belated birthday. I just want to I just want
to say that number one, I know RDT very well.
I went to high school with him. I went to
the protest eleven years ago. In August of twenty fourteen.
I shop at that store multiple times every day. I
(26:37):
talked to the managers, I talked to everybody there, and
every the customers love Ardt. The employees love him. However,
you know, even though they love him, apparently the root
of the problem is that Artie is running his own
I'm sure he may even be listening to you. I
don't know what they're telling me. Is that there that
(26:59):
he's running his own show and he's not communicating with
the board on major decisions relating to real estate and
other transactions. And it really ticked off the board. So
they feel like they've been slighted. And unfortunately, both you,
Joe and Tom, you know, you're along for the ride,
and they're taking it out on everybody that knows him.
(27:21):
So my question would be, why can't everybody get together
and put together a compromise. I mean, you know, nothing
is good is going to happen if RDT leaves and
his executives leave Shaw's and Hanffers and Walmart. They're all
salivating on anything that goes wrong with Market Basket. So
(27:42):
I would love to see or hear what you have
to think about the possibility of a compromise before that
arbitrary date of September thirtieth.
Speaker 2 (27:51):
Okay, that's a great question. Let's see if Joe or
Tom want to take it on. It does seem to
me like this much the ground here, But let's see
what Tom and Joe say. Go ahead, gentlemen, who who
like to go first?
Speaker 3 (28:04):
Joe?
Speaker 4 (28:05):
Yeah, so this is Joe. So I mean, basically, you know,
this assertion that mister Demules hasn't been given the board
information is just not true and that needs to be
stated and emphatically stated. You know, these these gentlemen that
are on the board of Director Collins Patrick in the keys,
they're all private equity guys, you know, and private equity
(28:26):
adventure capitalism has to do with, you know, potentially giving
shares of the company to outsiders because we don't have
stock offerings, and so they may come in and promise,
you know, big dividend payoffs to the to the shareholders
of the company. But there's a cost to that, right
and and and basically, mister de Moulz wants to protect
(28:48):
the company for the customers, associates, vendors, and the shareholders ultimately.
But this assertion that he hasn't cooperated or given them
the information they're looking for is not true, and the
record will reflect.
Speaker 3 (28:58):
That is before we get Tom in here. Is it
your sense, Joe, that they're going to try to take
this company public?
Speaker 4 (29:08):
You know, I don't know that, but I'm reading the
tea leaves a little bit and looking at the background
of these individuals.
Speaker 2 (29:14):
When you say shareholders, I assume that's you're talking about
some some sort of a public offering.
Speaker 3 (29:21):
It's a privately held company, right.
Speaker 4 (29:24):
Yeah, So I'm not saying that they're going to bring
the company public, but I am saying that these the
mindset of these individuals on the board of directors is
very much in that, you know, public offering mentality, and
I don't have an indication that that's what they're looking
to do. However, when you when you are in those circles,
you know, and you're talking about big distributions of cash,
(29:46):
there's no reason to think that they wouldn't do some
type of private equity arrangement down the road. So those
things remain to be seen, So I don't want to
make allegations that they are on However, you know, this
company has always been well protected under the leadership of
mister Demola's and his team, and we want that to continue.
Speaker 2 (30:06):
Okay, let's get Tom, Tom Gordon, go right ahead, Tom.
Speaker 4 (30:10):
Yeah, I think you know, as in addition to what
Kio said about the the board and whatnot, I think
this is also a serious con consideration about succession. Sixty
percent shareholders do not want this children running this company
in the future, and that's a big part of this.
Speaker 2 (30:28):
So so it sounds to me like, you know, Steve's
hope of a compromise, get everybody around the table and
get this resolved. From where you guys are spitting and
see Steve, if you get you can jump in here
as well.
Speaker 3 (30:44):
You don't see that as as a likely outcome.
Speaker 5 (30:49):
It takes two people to come to a compromise, and
if one person or one party doesn't want to work
with him, then it's not going to happen. I don't
know if the damage has already been done because of
airing the dirty laundry in the press. You know, I
would like to see everything handled behind closed doors instead
of out in the press. I don't know how Tom
(31:12):
and Joe feel about that, but that's from it.
Speaker 3 (31:16):
Obviously they did not run to the media.
Speaker 2 (31:19):
They I mean they it's been you know, six or
seven weeks now, and a decision was made to talk
about this publicly, and I'm glad they chose Nightside.
Speaker 3 (31:29):
I'm Steve. I appreciate you, Carl, thank you very much.
Speaker 5 (31:31):
Thanks Dan, thank you very much.
Speaker 3 (31:33):
Royal customer who feels that this is not going well.
We came back.
Speaker 2 (31:37):
We're going to talk with a gentleman who wrote a documentary,
actually produced, I believe, a documentary about market Basket, Tom Bennett.
We'll get to him right after this break. Here on Nightside,
my guest Joe.
Speaker 3 (31:51):
Schmidt, Tom Gordon.
Speaker 2 (31:52):
Still market Basket employees chose the director of operations, Tom
the director of grocery operations, but they have been placed
on paid administrative leave. And now a date of September
thirtieth has been mentioned a couple of times. I suspect
that there will be some resolution by then.
Speaker 3 (32:14):
That's still two and a half months away.
Speaker 2 (32:15):
Back on Nightside, right after this, you're on night Side
with Dan Ray on WZ Boston's news radio. Back to
the Phone's going to talk with Tom Bennett. Tom, you
wrote a documentary or produced the docum. This was a
video documentary I assume on market Basket.
Speaker 6 (32:33):
Yes, I co produced, wrote, and edited. Maybe so.
Speaker 2 (32:38):
As someone who has looked at this, I assume you
incorporated what was going on back ten or so years ago.
Did this development surprise you or is this just something
that did you anticipated?
Speaker 6 (32:56):
Completely surprised. I mean, although the motivations seem like they're
early similar, right, Yeah. I spent over six hundred hours,
you know, you know working on this film, and as
a businessman myself, you know somebody that's you know, started
and you know, sold a business, and where it was
to me, it was almost like it wasn't just an
(33:18):
incredible opportunity to work on this film and tell the story,
it was an opportunity to it was like one of
the best business school the opportunities you could have, because
you learned about what it takes to cultivate that kind
of loyalty not only in the in the employees, in
the associates, but in the customer base. I mean, I
was just astonished. I mean, I've been a customer for
(33:38):
thirty five forty years, I guess. But you know the
thing that you know, you know, Paulin and excuse me,
Tom and Joe are talking pretty extensively about the culture
and how the culture is the market basket. But the
thing that the epiphany for me and working on the
film was that market basket isn't it is as important
to the culture of Newingsland as you know, lobster roles
(34:03):
and and and it's sports teams. I mean, it's just
it's just it's just it's just in the d n A,
you know. I mean, uh And I think I think
the thing that that that was was really interesting about
that was learning about the history. I mean, you know,
Arthur got those values from his father and his grandfather,
you know, who understood that feeding families and having that
(34:27):
close connection to the community, you know, that Greek ethnic
community that that on Dummer Street that you know, where
the first doors were started. That's what I goes back to, right,
I mean, that's why you don't have you know, you
don't have automated checkouts and things like that, because they
understand that personal connection, right.
Speaker 3 (34:47):
And that's one of the.
Speaker 2 (34:47):
Things that I love best about about market Pasket is
that there are no automatic checkout machines. They're they're employing
people and people who were are learning of America, which
is which is business.
Speaker 8 (35:04):
Yeah, go ahead, yeah, it's okay, No, it's just going
to say, I mean, you know, just to you know,
a couple of other things I learned. I mean, there's
things that I don't think customers realize about this business, right,
I mean, you know, I think one of the things
that Arthur just a couple more points and I'll let
you get sid of color, but I think one of
the things that Arthur understands about the food industry is that,
(35:25):
you know, I mean, the reason that their number, you know,
one overall in value and number two in the country
is because he understands that in order to make that happen,
his associates have to have a vested interest in what's
going on. He has to give back the community, right
because it's such a low margin business, right. And and
he's yet he's cultivated a business model that that paid
(35:46):
off one point, that took a billion six in debt,
paid it off in ten years, grew at another twenty stores.
By every objective measure, this guy has crushed it. And
if you're if you if you own twenty percent of
that that enterprise, and all you have to do is
profit sharing checks the only motivation more money.
Speaker 2 (36:02):
As far as hey, Tom, I hate to do this
to you, but I got to wrap it up with
my guests. I appreciate you, and we'll keep in touch
with you.
Speaker 6 (36:11):
Thank you very much, Thanks very much, take care.
Speaker 2 (36:13):
Yeah, okay, Joe and Joe Schmid, Tom Gordon, thank you
for your courage, uh to come on the program. I
hope that the dowers to the benefit and that there's
some sort of way in which everybody can get back
on the team, because I don't want to lose Market
Basket for what it is. I don't want to see
(36:33):
it change. I don't want to see it sold. I
don't want to see it, uh, you know, broken up
in any way, shape or form. And I would just
ask you if both of you would keep in touch
with us, and we'll you know, we'll have you back
if you'd like. We'll also have We've invited the folks
who are running market Basket now, the folks who discharged you,
folks put you on administrative leave with pay.
Speaker 3 (36:56):
Let that get their side of the story.
Speaker 2 (36:58):
I don't understand them motivations, but you have made a
very compelling case tonight for the professionals, and that both
of you epitomized. So I appreciate you taking the time
to be with us. Then I give you a quick
final word of either if you would like it.
Speaker 4 (37:13):
Yeah, Dan, we want to thank you for having us
on your show. You know, everything will stay the same
when they bring mister de Mooes back and the leadership
team and mister Demos is a tremendous leader and even
a better person, and that's why we're standing up for
it and that's what needs to happen. So again, we
appreciate the opportunity to speak with you this evening. So,
you know, Dan, one thing I'd like to add to
a lot of references back to twenty fourteen. You know,
(37:35):
the boss is the same guy was in twenty fourteen.
The players on the other side have changed. Boston the
same Menia was back there.
Speaker 2 (37:42):
Yeah, okay, Well, I think you've major points and made them.
Well gentlemen, keep away to follow this drama. Thank you
very much, love to have you back.
Speaker 4 (37:49):
Thanks so much, Thanks, thank you, good night.
Speaker 2 (37:52):
When we get back, we to talk about a different drama,
one that's going on in Newton right now, dealing with
the no Nantum section of that commune and the elimination
of a strip down the middle of this road, very
special road, Adams Street, which commemorates the history and the
culture of the Italian American community, the red, white, and
(38:15):
green striped which have to this moment yet to be restored,
and their big festival begins on Wednesday. We will come
back with some interesting guests on that topic right after
the break here on Nightside.
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