BOSTON (CBS) – A spokesman for ousted Market Basket CEO Arthur T. Demoulas says Arthur T. and Arthur S. Demoulas are still negotiating a sale of the company but are at an impasse on financing terms.
“Thus far, [Arthur T. Demoulas]’s offers have been rejected, not on the basis of price, but with counterproposals that have been laden with onerous terms that are far beyond comparable transactions,” the spokesman said Sunday. “Arthur T. Demoulas reaffirms his desire and good faith for completing the purchase of the 50.5% of [Demoulas Supermarkets]. Those terms include an offer at their asking price, at a valuation determined pre-crisis.”
Artie T.’s statement comes as the company stalemale drags into its fourth week with workers walking off the job leaving shelves unstocked and sales dropping.
“It is Arthur T. Demoulas’ hope that the Arthur S. Demoulas family will come to the table to reach a final agreement on reasonable terms before it is too late to save this company,” the statement said.
Sources told WBZ NewsRadio 1030 that Artie T.’s bid is for half the company’s value before the crisis began. However, sources also say Artie S. has made tough financing demands such as high interest rates on loans, difficult repayment schedules and a short time to close the loan.
“This company is not just coming apart at the seams. Everyday that goes by, it is losing value,” said food industry analyst Kevin Griffin, noting Artie T.’s bid is the only serious bid.
The spokesman also said Artie T. wants to avoid settling the matter in the media.
“It was Arthur T. Demoulas’ hope and intent that this matter not be negotiated in the press. He does not believe that a war of press releases and statements is helpful to this very serious situation,” the spokesman said.
WBZ NewsRadio 1030’s Mark Katic reports