Letter: A series of missteps
Market Basket’s implosion? Implosion is when an organization is destroyed by things that are happening within it.
Case in point is the naming of co-CEO Jim Gooch at Market Basket, who was the former CEO at Radio Shack for 16 months.
During his tenure there, share prices declined 84 percent. In July 2012, the company reported an unprecedented loss of $21 million compared with a $25 million profit during the same period in 2011. Just weeks before being fired, Gooch killed the only reason to own Radio Shack’s stock: the dividend.
What were the three independent board members thinking when they hired him? In December 2013, the board’s website stated that, “The Board may retain an executive search firm to assist it in identifying qualified potential candidates from outside the organization.”
As it turned out, the board hired a Spenser Stuart for search services and paid him in excess of $300,000.
Did this headhunter recommend hiring Gooch to run Market Basket into the ground? If so, he is succeeding.
It is interesting reading all of the negative comments by the specialists, including professors in crisis management and business practices, at their astonishment at how the executives currently in control have managed the situation.
More than one said the directors should consider reinstating Arthur T. Demoulas.
Whether the independent board members will put the customers first along with the dedicated workers or whether their own self-interests will continue to resonate remains to be seen.
How greedy can three individual board members be?