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(Seacoastonline.com)   Market Basket board offers compromise to ousted CEO: "Help us earn profits again. In exchange, you get no title, no authority, and we'll sell the company to someone else when it's worth something again"   (t.seacoastonline.com) divider line 29
    More: Asinine, basket, executive directors, window dressing, James Gooch  
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1925 clicks; posted to Business » on 09 Aug 2014 at 2:15 PM (19 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



29 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest
 
2014-08-09 12:32:55 PM  
How about no? Does no work for you?
 
2014-08-09 12:44:16 PM  
Jesus Fark.  This whole case should go into business textbooks as a great example of a Board doing everything humanly possible to destroy a business is completely and quickly as possible.  Including the part about hiring co-CEOs, one of them who got fired from Radio Shack and the other from an unrelated industry who resigned under mysterious personal reasons.

Honestly - as a case study, this is one for the books.
 
2014-08-09 12:56:35 PM  
The three independent directors in question
3.bp.blogspot.com
 
2014-08-09 01:57:57 PM  
I can smell the desperation all the way down here in Philadelphia.  The current directors are toast, no matter what.
 
2014-08-09 02:21:48 PM  

Benevolent Misanthrope: Jesus Fark.  This whole case should go into business textbooks as a great example of a Board doing everything humanly possible to destroy a business is completely and quickly as possible.  Including the part about hiring co-CEOs, one of them who got fired from Radio Shack and the other from an unrelated industry who resigned under mysterious personal reasons.

Honestly - as a case study, this is one for the books.


Who needs to get an MBA when you can read Fark case studies.

/only 78% serious
//I bet many farkers would run MB better
///Or at least fark it up less...
 
2014-08-09 02:22:34 PM  

MaudlinMutantMollusk: The three independent directors in question
[3.bp.blogspot.com image 600x439]


Not fully fair. The Stooges would mess it up, but they would try to fight for good.
 
2014-08-09 02:30:39 PM  

Benevolent Misanthrope: Jesus Fark.  This whole case should go into business textbooks as a great example of a Board doing everything humanly possible to destroy a business is completely and quickly as possible.  Including the part about hiring co-CEOs, one of them who got fired from Radio Shack and the other from an unrelated industry who resigned under mysterious personal reasons.

Honestly - as a case study, this is one for the books.


To be fair the other co-CEO ran Albertsons into the ground. So she has that on her list of job skills.
 
2014-08-09 02:34:30 PM  
Now the board's stance seems to be "Well, we tried to reach out to him, but he's not responding to our generous offer to return to the company."

This is going to drag on for far longer than I ever expected.  Right now, the entire part-time workforce for the company is reduced to 0 hours.  It's probably only a matter of a couple weeks before they're officially laid off.  With sales being down by something like 90%, I can see the board just outright selling assets within a month if this doesn't get resolved.  Market Basket owns all of the stores' property outright.  So there could be a fire sale on real estate soon.

What sucks is that they have an incredibly easy way to cash out with ATD, but refuse to take it out of spite.  If they drag this out and continue to devalue the company, they end up getting less money for the sale, and ATD still gets nearly half of that money due to his current ownership stake.
 
2014-08-09 02:49:59 PM  
OMG.   No way in hell did they manage to make that asinine offer with a straight face or i they did they deserve an Oscar.

Serious total bullshiat offer and If i were Arthur T. I would tell them to go to hell and dictate my own terms.

1. Ceo job restored and with no removing me with out 100% agreement by shareholders.

2. Arthur S. must sell all his shares and leave the company.

3. Curren co ceos are dismissed with no golden parachutes.
 
2014-08-09 03:25:18 PM  

grimlock1972: 2. Arthur S. must sell all his shares and leave the company.


Or at least have his shares converted to non-voting and agree to not lobby
 
2014-08-09 03:41:26 PM  

MaudlinMutantMollusk: The three independent directors in question


Hey! That's an insult to the Stooges!

/unless they're the ones who turn on Evil Arthur, plaued by Dick Curtis
 
2014-08-09 05:06:25 PM  
Surely there's  some rich fark in the region who could white knight the whole thing?  Buy out the pinheads, but AT back in and make a nice, steady revenue stream out of it.  And be a local hero.
 
2014-08-09 05:24:25 PM  

dionysusaur: Surely there's  some rich fark in the region who could white knight the whole thing?  Buy out the pinheads, but AT back in and make a nice, steady revenue stream out of it.  And be a local hero.


Perhaps Whole Foods could swoop in, buy the company for pennies on the dollar, fire the management and board, and retain the competent employees and pay them a living wage.
 
2014-08-09 05:48:46 PM  

valkore: dionysusaur: Surely there's  some rich fark in the region who could white knight the whole thing?  Buy out the pinheads, but AT back in and make a nice, steady revenue stream out of it.  And be a local hero.

Perhaps Whole Foods could swoop in, buy the company for pennies on the dollar, fire the management and board, and retain the competent employees and pay them a living wage.


That's really not a half bad idea. Whole Foods has been actively searching for ways to stay up to speed in face of increasing competition in its core focus area. Perhaps expanding to regional grocers with high standards is the way to go. Otherwise, the rumors of them being bought out by someone else are inevitably going to come true sooner or later.
 
2014-08-09 08:45:48 PM  
We don't even know what Market Basket is ...
 
2014-08-09 09:07:23 PM  

valkore: dionysusaur: Surely there's  some rich fark in the region who could white knight the whole thing?  Buy out the pinheads, but AT back in and make a nice, steady revenue stream out of it.  And be a local hero.

Perhaps Whole Foods could swoop in, buy the company for pennies on the dollar, fire the management and board, and retain the competent employees and pay them a living wage.


If they're smart, they'll swoop in, buy the company, and put Arthur T. back in charge.
 
2014-08-09 09:09:44 PM  
Anyone have a good link how low Arthur S. got hold of the company?  All I heard was he sued contesting the will years after the fact and got a judge to raise his stake from 5 percent to 51 percent.
 
2014-08-09 09:39:29 PM  
They've already gutted it and have prospective buyers. There is no intention of having it return to normal.
 
2014-08-09 09:50:59 PM  

NeoCortex42: Now the board's stance seems to be "Well, we tried to reach out to him, but he's not responding to our generous offer to return to the company."

This is going to drag on for far longer than I ever expected.  Right now, the entire part-time workforce for the company is reduced to 0 hours.  It's probably only a matter of a couple weeks before they're officially laid off.  With sales being down by something like 90%, I can see the board just outright selling assets within a month if this doesn't get resolved.  Market Basket owns all of the stores' property outright.  So there could be a fire sale on real estate soon.

What sucks is that they have an incredibly easy way to cash out with ATD, but refuse to take it out of spite.  If they drag this out and continue to devalue the company, they end up getting less money for the sale, and ATD still gets nearly half of that money due to his current ownership stake.


DSM only owns about a quarter of their stores, another third or so are long term leases from a company owned by ATD and his brother in-laws, the remainder are leases from other owners. So no matter what DSM will owe more than it makes by selling out.
 
2014-08-09 09:52:01 PM  

NeoCortex42: Now the board's stance seems to be "Well, we tried to reach out to him, but he's not responding to our generous offer to return to the company."

This is going to drag on for far longer than I ever expected.  Right now, the entire part-time workforce for the company is reduced to 0 hours.  It's probably only a matter of a couple weeks before they're officially laid off.  With sales being down by something like 90%, I can see the board just outright selling assets within a month if this doesn't get resolved.  Market Basket owns all of the stores' property outright.  So there could be a fire sale on real estate soon.

What sucks is that they have an incredibly easy way to cash out with ATD, but refuse to take it out of spite.  If they drag this out and continue to devalue the company, they end up getting less money for the sale, and ATD still gets nearly half of that money due to his current ownership stake.


This is assuming Hannaford even still wants it at the end of this. I think there's a reasonable chance that they ride the valuation all the way down to zero.
 
2014-08-09 09:55:01 PM  
Nobody in their right mind would bid on a company whose value is dependent on one individual.

BK coming.
 
2014-08-09 10:42:42 PM  

MaudlinMutantMollusk: The three independent directors in question
[3.bp.blogspot.com image 600x439]


A pie fight wouldn't destroy a tenth of the company's value that these assholes have.
 
2014-08-09 11:45:33 PM  

Satanic_Hamster: Anyone have a good link how low Arthur S. got hold of the company?  All I heard was he sued contesting the will years after the fact and got a judge to raise his stake from 5 percent to 51 percent.


Arthur S's sister-in-law, who controls 5.5%(4% inherited, 1.5% her daughter), switched sides last year.

http://www.sentinelandenterprise.com/news/ci_26225290/how-one-woman- se t-off-latest-chapter-market
http://www.boston.com/images/twoarthurs2.pdf

I have read in various places that sales are down 70-90% chainwide, and that they are losing as much as $10 million/day. although since they started laying people off, and not stocking(and then throwing away) most perishables, the losses have probably slowed somewhat. Hard to know what the company's financial situation is though, especially how much debt they have.
 
2014-08-10 12:36:00 AM  
This is like a bad cartoon.
 
2014-08-10 07:10:58 AM  

count_chimpula: Satanic_Hamster: Anyone have a good link how low Arthur S. got hold of the company?  All I heard was he sued contesting the will years after the fact and got a judge to raise his stake from 5 percent to 51 percent.

Arthur S's sister-in-law, who controls 5.5%(4% inherited, 1.5% her daughter), switched sides last year.

http://www.sentinelandenterprise.com/news/ci_26225290/how-one-woman- se t-off-latest-chapter-market
http://www.boston.com/images/twoarthurs2.pdf

I have read in various places that sales are down 70-90% chainwide, and that they are losing as much as $10 million/day. although since they started laying people off, and not stocking(and then throwing away) most perishables, the losses have probably slowed somewhat. Hard to know what the company's financial situation is though, especially how much debt they have.


I don't think they had debt at the start of this as they pretty much paid all of their suppliers in cash, which is how they kept prices low.  They'd also just set aside about $40 million for employee profit-sharing, which is probably now being eaten up.
 
2014-08-10 11:58:01 AM  
If I was Arthur T, I would respond just like this
i.imgur.com
 
2014-08-10 02:00:50 PM  

dionysusaur: Surely there's  some rich fark in the region who could white knight the whole thing?  Buy out the pinheads, but AT back in and make a nice, steady revenue stream out of it.  And be a local hero.


hypervocal.com

Unfortunately it doesn't work that way.
 
2014-08-10 04:34:04 PM  

The My Little Pony Killer: This is like a bad cartoon.


This is why my friend's family picks one successor who inherits 75% of the stock. That person's first act must be to assign a successor in case they die.

Pretty smart system IMHO.
 
2014-08-10 08:27:08 PM  
So far, it's:

upload.wikimedia.org

The company, as things now stand, is toast. If it should somehow return, I suggest a name change:

upload.wikimedia.org
 
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