Demoulas Sisters Remove Board Member Amid CEO Feud

 The Demoulas sisters remove the final board member with any length of service on the board or knowledge of the company. 

On August 7, 2025, Caren Demoulas Pasquale, Frances Demoulas Kettenbach, and Glorianne Demoulas Farnham—who together hold 60% of Market Basket’s shares—voted to remove longtime board member Bill Shea without notifying him or 28% shareholder Arthur T. Demoulas. Shea had served on the board for 26 years, including 24 as chairman.

His removal marked the culmination of the sisters’ gradual takeover of the board, replacing veteran members with their own appointees since 2019—Steven Collins (private equity), Jay Hachigian (venture capital attorney), and Michael Keyes (real estate developer)—all appointed over Arthur T.’s objections. The former board had over 90 combined years of experience; the current board has only 11.

This transition accelerated in 2025, beginning with the January removal of 24-year board member Terry Carlton. In March, the new members ousted Shea as chairman and formed an executive committee made up exclusively of themselves, consolidating power and sidelining both Shea and Arthur T.

Despite company bylaws requiring 5 to 7 directors, the board has been out of compliance since Carlton’s removal, a situation worsened by Shea’s departure. Arthur T. now has no board representation.

Shea has repeatedly requested information regarding the alleged reasons behind efforts to remove Arthur T. and his team—specifically accusations of a planned work stoppage—but the board has not responded, despite legal obligations under Delaware law.

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Quote from Bill Shea, (Now Former) Market Basket Board Member

“I think it is clear that the main reason I was removed was that I was exercising my right as a board member to demand information on what the basis of these allegations against Arthur was, particularly about the supposed work stoppage. That’s not a threat, it’s a duty that I had — to get to the bottom of why they had so publicly decapitated this incredibly successful company, removing its management. I have a track record of 26 years of results as an independent director representing the interests of all the shareholders.  By every measurement, Market Basket was operating at the top of its game during that time – ranked number two in the country with operating results quarter after quarter that are the envy of the industry.  I wouldn’t take a single vote back.  The only thing the sisters had to “tolerate” was tremendous performance. 

 I also believe they removed Terry Carleton from the board in January for similar reasons – he questioned a number of things that the shareholder block of the three sisters and the three supposedly independent directors were doing behind the curtain related to real estate and operational issues.

 It should be patently obvious that Jay Hachigian, Steven Collins, and Michael Keyes are not operating as independent board members.  They have thrown the company into turmoil in a very public way.  The disruption is entirely down to them.  They are here executing on a plan.”

 Quote from Justine Griffin, Spokesman for Arthur T. Demoulas

Justine Griffin, Mr. Demoulas’ spokesperson said: “In taking this action, Mrs. Kettenbach, Mrs. Farnham and Mrs. Pasquale have done two things.  They have eliminated the one person who had the right to demand the factual information behind these false accusations; the one person who could question their actions and that of their hand-picked board members. And inside of eight months they have wiped out any dissent to their moves, not to mention the deep knowledge of the company the board previously possessed, and the insights it enabled.  Clearly, that was not what interests them.”

Quote from Arthur T. Demoulas

Mr. Arthur T. Demoulas said: “I wish to thank Mr. Shea for the tremendous contributions that he has made to Market Basket and its governance over the past quarter century.  Mr. Shea, together with the entire Market Basket organization, has not only weathered some well-known storms, but has been instrumental in guiding the solid growth and achievements of this company by holding true to the values established by my father, Mr. T.A. Demoulas.   Mr. Shea embraced the associates and the culture of Market Basket, recognizing early on that it is the heart of the company and is the secret to our collective success.  He deserves every accolade.  His abrupt and inelegant dismissal saddens me.  Mr. Shea will always have my profound gratitude, admiration and respect.   We know how much Mr. Shea has meant to this company.”