Former Market Basket CEO Arthur T. Demoulas' bid to purchase the embattled grocery chain is apparently the only bid left on the table as the family owned retailer moves closer to negotiating a deal to halt a costly employee uprising and consumer boycott, The Boston Globe reported Tuesday, citing sources with knowledge of the matter.
The negotiations are fluid and both sides of the Demoulas family are working nearly around the clock to reach a deal, the sources told the newspaper, adding that the company is losing millions of dollars a day because of the ongoing protests against it.
Workers are demanding the reinstatement of Arthur T. Demoulas, whom they credit with keeping prices low, treating them well and guiding the company's success.
His cousin, Arthur S. Demoulas, gained control of the board of directors. Last month, the board fired Arthur T. Demoulas, which sparked the current uprising and customer boycott. The cousins have been at odds for decades, according to various media reports.
The board is working to facilitate a sale, but its approval hinges on the company's shareholders, The Boston Globe reported. The board met on Monday and decided to keep hammering out a deal.
Arthur T. Demoulas submitted a bid to buy the 50.5 percent stake owned by Arthur S. Demoulas and other relatives on his side of the family. The shares are presumably valued at between $3 billion and $3.5 billion, according to industry analysts.
"Not only is the company being drained of money, but its suppliers are being hurt and employees are going without wages," John Davis, chair of the Families in Business Program at Harvard University, told The Boston Globe. "The piling on that happens because of that could really result in this company being destroyed."
The family feud is apparently having a ripple effect as local farmers who normally supply produce to the regional supermarket chain have reported losing as much as $2,000 a day due to the ongoing revolt by store workers and customer boycott.
—By CNBC.com. The Associated Press contributed to this report.
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