Tewksbury, Massachusetts — The board of directors at Market Basket has placed CEO Arthur T. Demoulas on paid administrative leave amidst serious allegations that he was orchestrating a work stoppage. This decision, announced on Wednesday, comes as part of an investigation into claims that Demoulas, along with other unidentified employees, were planning to disrupt the grocery chain’s operations in response to directives from the board.

The situation at the company has further inflamed longstanding tensions between Demoulas and the board regarding control and succession planning. In a press release, the board stated that Demoulas is acting as though he has the sole authority to appoint his children as successors, disregarding the perspectives of both board members and the majority ownership of the company.

Justine Griffin, a spokesperson for Demoulas, revealed that his children are among those placed on leave as part of the ongoing investigation. Griffin accused Demoulas’ three sisters, along with their appointed board members, of orchestrating this move. “The company is currently at its operational peak, and the notion that this board is conducting an investigation is simply a cover for a hostile takeover,” she stated, signaling strong support for the CEO’s leadership.

Despite the leave, Demoulas will continue to receive his full salary and remain eligible for company distributions. Officials have assured employees that there will be no changes to salaries or benefits during this period. The company’s widely praised profit-sharing plan will also continue unchanged, an important factor given the tensions resulting from previous conflicts at Market Basket.

Founded in Lowell decades ago, Market Basket has grown to include 90 stores, but family disputes over control have often played out publicly and in legal arenas. The rivalry intensified in 2014 when the board removed Demoulas, a decision that sparked significant backlash, including protests and employee walkouts. This tumultuous episode ultimately culminated in a buyout in which Demoulas and his allies took on substantial debt to reclaim control, a financial obligation that was resolved last year.

As the latest chapter in this ongoing saga unfolds, employees and customers alike are keenly watching how this leadership dispute will impact the grocery chain, which has maintained a loyal following thanks to its competitive pricing and community-oriented approach. The outcome could reshape the dynamics within this storied family business and influence its future direction.