primitives discuss Market Basket grocery chain

[USA4ME]

The primitive graywarrior has been the main informant about this topic on the island, though not the only one.

http://www.democraticunderground.com/10025323895

http://www.democraticunderground.com/10025310524

http://www.democraticunderground.com/10025320154

http://www.democraticunderground.com/10025326721

Here's the story.

There's a small grocery store chain called Market Basket that has been getting some play on the island lately. The non-union workers went on strike because the CEO was fired. The primitives seem to think this is the spark that will start the revolutionary flame, but we all know how good they are as viewing events accurately, much less predicitng how they'll end. Those of you who live in the MA, NH & ME can fill in any gaps or mistakes I might make, but having read about what brought this all about, I think I have a pretty good grip on what's really taking place.

In brief, this was a family owned grocerty store; Dad turned it over to the two sons who grew the business; one son dies and the other son uses his death to his advantage and starts creating side subsidies and doing some other things to shaft the family of his dead brother; the other side of the family figures it out and sues him; the court awards majority ownership to the dead brothers family and the cheaters son becomes CEO.

OK, the key here is that this is a giant family feud, and that's all it is. Understanding that explains everything else. Disregarding that leads one to believe the same lies the primitives believe.

When the employees pensions drop in value because of the economic downturn around 2008, the CEO (cheaters son) uses company profits ($46M) to replinish what they lost in value.  He has two main reasons for doing this: 1) It's a poke in the eye to anger the other side of the family, and 2) he gets the employees on his side. This guy wants the whole company to himself, there's no doubt about that. That's what his Dad wanted, and he's following in his footsteps.

The CEO gets fired for mismanagement and now the employees want him reinstated and they refuse to work until he is. His $46M gambit worked! The other side of the family is looking for an investor to buy out the ex-CEO's side (49.5% of stock), but the ex-CEO is looking to buy them out. He wants to control the whole company. That's been his goal all along.

He's in a no lose situation. If they don't sell to him, he comes out looking like he really tried to do good for his employees. If they do take his offer, he'll have a bunch of loyal employees who'll do anything for him while he works towards his goal of selling the company and walking away.

And what will happen, if he is able to purchase the company, is he'll rebuild the image of the company, sell the stores for a good profit to some big box chain who wants into that market, who will then over time impliment big box chain store policies, and their beloved CEO will be the guy who sold them out to big grocery. They cheer him now and they'll curse him later.

But liberals aren't intelligent enough to see this far ahead. This guy has bought his employees off so he can use them, and they won't figure it out until it's too late. It's always the "here and now" with libs.

.

[franksolich]

Great! summary of what I've read about this in the news.

[CSeeman]

It is very interesting that you posted a message about this topic because I am currently an Accounting professor at a college in North Carolina and I have been reviewing this case as a possible topic in a management course I am scheduled to teach this fall.

Here is some more information:

[USA4ME]

Here is some more information:

Oh yeah, this thing is more complicated than my brief. But the article does confirm the major sticking point; and that is this is one big family feud. What the employees don't seem to realize is they're just pawns no matter who wins. They think one will give them a better deal than the other, when both sides just want to milk the cash cow and move on.

What's funny are the primitives believing this is some type of "employee stand against the abuses of the uber-rich." Like I said, this $46M gambit was a risk, but it allowed him to effectively shut down the company until he gets what he wants which is full control, or if not that at least a more favorable settlement. This guys as big a snake as his old man, and the employees are helping his side of the family shaft the other side.

.

[CSeeman]

http://masscases.com/cases/sjc/424/424mass501.html

here is the actual court complaint and charges against the former CFO has heard in a Mass court of law.

[USA4ME]

BTW since I posted the four links in my OP, the top link..

http://www.democraticunderground.com/10025323895#post32

...which had slipped to page 3 or 4 on the island GD forum has gained a whole new life.

Hi primitives! I don't expect any of you to be able to comprehend anything I was talking about, but after it happens you can come back, re-read, and maybe put the puzzle together.

.

[Chris_]

BTW since I posted the four links in my OP, the top link..

http://www.democraticunderground.com/10025323895#post32
.

They're also cheering the mayor of the city taking sides in the situation.  DUmmies love themselves an oligarchy.

[CSeeman]

The really funny part is this guy is accused of breaking the law by using his position to benefit himself and as usual the Lib's do not care that someone breaks the law or anything else as long as they  ( in this case the so-called workers) receive something. This is a major breech yet they do not care anything about it. The law never seems to matter to them but what they do not understand is that without these laws they, ( the workers who are mostly liberal) would be back working in the conditions that they claim Conservatives want them to work in. It is such a circular argument and so funny to just sit back and watch.

The same thing with Obama's circumvention of power. When we are under a dictator like Hitler or somebody worse do these people really think they will be part of the dictator's inner circle. The idiots on DU think that somehow they will be chosen to be part of the leadership. I have been watching this for a few years now and it never loses its entertainment value.

They are so predictable. 

[CSeeman]

They love it when their people break the very laws that are protecting them....it is really an amazing thing to watch

[USA4ME]

http://www.democraticunderground.com/10025334198

Evidence the primitives do read here.

Up until this thread was started, the primitives were all talking about the ex-CEO, the employees, and how they were taking down "the man." There was no mention of how this was a family feud and how the employees were being played as pawns.

Now suddenly they are coming around to what's really going on. They never would have done that without having read it here first.

graywarrior

This morning's message from Save Market Basket

(blah, blah, blah....)

safeinOhio

1. Bad blood between family

equals bad business. Duh.

valerief

5. And, as usual, the worker bees and public be damned.

Chan790

8. My guess...investment bankers.

I don't like it, but I spent enough time in banking to know that if your only concern is maximizing the valuation of your personal share in divesting...that nothing is going to provide as high of a return here as liquidation and sale, probably to a national grocery conglomerate like Albertsons LLC, The Kroger Company or Royal Ahold.

The last one is the most likely...they'd pay the most as they already have a regional presence...buying MB would give them a dominant market-share throughout the Northeast where they already own Stop & Shop and Giant. There's also the big elephant in the room...a larger corporation that has been trying to break into the grocery industry in the Northeast with little success: Walmart. They might be an interested buyer to obtain the chain and open/possess supermarkets in New England where their own brand trademarks have negative reception. That's a less-likely possibility but it's not illogical or impossible.

I'm pretty sure that liquidation has been ASD's long-term plan all along. The problem therein is that this kind of protest may help that position by making the company inviable to remain in business if this drags on. That's the problem...there's no reason for ASD to relent...either the associates relent so he can better position the company to sell and he wins...or the protest kills the company and he wins. The protest isn't going to harm the purchase price for any of those buyers...they don't give a shit about the revenues of a company that they're going to gut--they're in it for market share, locations, competitive nullification (eliminating a competitor) and in Walmart's case, the sign over the door.

freshwest

12. Agree. The demand will still be there, and someone will do it. The BOD will retire in style.

I'm wondering how much debt they've saddled the company with already, to increase their wealth with no intention of making good on the debt. So they're pushing to bankruptcy.

Sounds like a Bain manuever that will not effect them. They don't have to shop there and can afford to send out help to buy what they need or have it delivered.

graywarrior

14. They didn't expect this but I imagine there's some intense business decisions being made that doesn't give a damn about the employees or customers.

Bonhomme Richard

15. My gut tells me two things.....

1. This is all about power and those on the board and the family have taken the "employees don't get to tell us what to do...**** them" attitude. It's un-American telling the Board what to do.

2. In order to maintain that stance, because at the end of the day it is all about the money to some people, they have an exit strategy in place and they know they can't be personally hurt financially.

An aside...they are probably being supported by and told by others in the industry, ie. big chains, that the employees must not win or Pandora's box will be opened and they will all have to deal with "unruly employees".

As you can clearly see, their ability to fully comprehend the situation is still simplistic at best, but they are beginning to come around to a very tiny basic understanding of what's going on. We'll see if they have the capacity to develop from there.

.

[zeitgeist]

I read a comment in one of their links that went something like this:

"this is not about need versus greed, this is about revenge, a real Greek Tragedy."

Art T and Art S are locked in an epic struggle.  The employees are little more than pawns and will be sacrificed.

Beware of Greeks bearing gifts.  Did Art T buy the workers love with his stock bailout? Strategy and tactics?  It certainly has prevented the unions from gaining a foot hold in the Family Business.