Market Basket’s president and CEO Arthur Demoulas has been fired in a unanimous decision by the board of directors, which came as a result of a months-long dispute between the two sides.

The grocer announced last week the board had unanimously voted to remove Demoulas despite their efforts to settle the disagreements through mediation.

The board has also filed a complaint against Demoulas in the Delaware Court of Chancery, alleging that he failed to provide information about the company’s annual budget and expenses and refused to engage in discussions about a succession plan.

The complaint also alleged that Demoulas banned board members from entering the company’s headquarters, as well as had a “secret plan” to instigate a consumer boycott and work stoppage if the board attempted to take disciplinary action against him.

“Demoulas forced the board to choose between accepting his autocratic control of Market Basket or terminating him in order to protect a vibrant and growing business that cannot flourish over the long-term under the leadership of a dictator,” the filing reads.

The filing noted that Demoulas is contesting his termination.

In May, the company’s board placed Demoulas and other top executives, including his son and daughter, on leave to investigate his alleged efforts to launch a work stoppage. Demoulas at the time described the move as a cover for a “hostile takeover”.

This is not the first time the board has ousted the CEO. In 2014, the board’s decision to terminate Demoulas sparked widespread protests by shoppers and workers, prompting them to sell the chain to Demoulas and three of his sisters.

According to last week’s filing, Demoulas owns 28.4 per cent of Market Basket and his three sisters collectively own 61.3 per cent. The other 10.3 per cent is in a trust for the 14 children of Demoulas and his sisters.

Jay Hachigian, chair of the board, said it is unclear how consumers and workers will react to the leadership change this time, but assured that the chain will continue operating as usual. 

Founded in 1917 by Athanasios Demoulas – Arthur’s grandfather, Market Basket operates 90 supermarkets across Massachusetts, Rhode Island, New Hampshire and Maine.