AREAS FOR CONSIDERATION (MARKET BASKET) – Scenario no.

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Scenario no. 1 – As part of the reinstatement of Arthur T. Demoulas, the Market Basket
became indebted by $1.6 Billion. The $1 Billion mortgage of Market Basket is another
question in the financial problem. However, part of the problem will be how will Market
Basket recover from the debts that they came thru in order to reinstate Arthur T. to
being CEO.
1. Arthur T., as the majority shares holder for the market Basket enterprise holds
the majority share of decision making. As the CEO, he had “un-accounted”
deals with third party companies. These companies however, were owned by
members of his family. It seemed that Market Basket started to be in-debt even
without really taking out money to other “real” external companies. (Umutang
sa sariling pera.)
2. Regardless of the status of Market Basket as a grocery store. They may be
under debt based on the compensation given to its employees. Initially, market
basket employees are compensated at $12/hr. As mentioned in the article, in
the state that market basket is in at the moment, the rate of employees of
market basket may even aggravate their existing financial problem.
3. Back then, the families of Arthur T. and Arthur S. were already in dispute. Even
their parents (Mike and George) were already in dispute when Mike started to
buy-out George, leaving him with only 8% of the total shares of Market Basket.