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Market Basket board reviewing offers to buy company

Supermarket chain losing between $9 and $11 million a day

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Market Basket board reviewing offers to buy company
Supermarket chain losing between $9 and $11 million a day
Market Basket Tuesday continued to evaluate "strategic alternatives" as it loses an estimated $10 million daily, according to one food retailer expert.Watch the report"I would say Market Basket is losing somewhere between $9 million to $11 million a day," said Kevin Griffin, publisher of The Griffin Report, a food marketing publication. "You're bleeding that money and every day, brand loyalty is being eroded."Images: Market Basket by the numbersWhile Griffin said sources knowledgable about the current negotiations between Arthur T. DeMoulas and Market Basket's board of trustees tell him DeMoulas is the only legitimate potential buyer, the board, now controlled by his rival and cousin Arthur S. DeMoulas, issued a statement rebuking that claim."Despite reports to the contrary, Arthur T. DeMoulas is but one of several potential buyers for the company who continue to express a strong interest in purchasing the company," said the statement released Tuesday. "While Mr. Demoulas' offer provides a path toward solving many of the problems he has helped to create, it is but one alternative among the options the board is reviewing."Griffin estimated the 71 stores are valued at around $3 billion, which would mean "Artie T", as the workers affectionately call him, would have to offer around $1.5 billion to buy out the 50.5 percent he currently doesn't control.'My sources tell me the money is ready to go," said Griffin. "It's all lined up. Investment bankers are more than willing to support this kind of model. They're a first-class operator when they're flying on all cylinders."But pressure to get thousands of customers back into the store, to get warehouse distributors back on the job and product back onto the shelves grows exponentially daily.Griffin said brand loyalty eventually erodes when customers get use to shopping at Market Basket's competitors."Even though there is a tremendous amount of loyalty and there is this massive support for what is happening," said Griffin, "the reality is that you have to put food on the table.""It's been two weeks and I wanted to stop by and check things out and see how it is and I was hoping things would be back to normal," said one man, a longtime Market Basket customer, looking at the empty shelves. "It's going to be awhile before I'm back."Shelves continue to dwindle with product and aisles at the Woburn and Chelsea stores were near empty.The few customers inside, as off-duty Market Basket workers continued to loudly picket outside, said they came just to check on what was available before going to more expensive alternatives."I just paid a dollar more for milk at another store than I would here," said one shopper, indignantly.Workers, hankering for any tidbit of news from the closed door negotiations between Arthur T and the board, remain busy stocking what few products were arriving or aggressively scrubbing empty cases and produce stands."It's my store -- it's everyone's store, that's in this store here. I've been here 39 years and this is what we do," said Mark Spiller, assistant manager of the Woburn store, explaining pride in their work.He said the stores remain strong.

Market Basket Tuesday continued to evaluate "strategic alternatives" as it loses an estimated $10 million daily, according to one food retailer expert.

Watch the report

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"I would say Market Basket is losing somewhere between $9 million to $11 million a day," said Kevin Griffin, publisher of The Griffin Report, a food marketing publication. "You're bleeding that money and every day, brand loyalty is being eroded."

Images: Market Basket by the numbers

While Griffin said sources knowledgable about the current negotiations between Arthur T. DeMoulas and Market Basket's board of trustees tell him DeMoulas is the only legitimate potential buyer, the board, now controlled by his rival and cousin Arthur S. DeMoulas, issued a statement rebuking that claim.

"Despite reports to the contrary, Arthur T. DeMoulas is but one of several potential buyers for the company who continue to express a strong interest in purchasing the company," said the statement released Tuesday. "While Mr. Demoulas' offer provides a path toward solving many of the problems he has helped to create, it is but one alternative among the options the board is reviewing."

Griffin estimated the 71 stores are valued at around $3 billion, which would mean "Artie T", as the workers affectionately call him, would have to offer around $1.5 billion to buy out the 50.5 percent he currently doesn't control.

'My sources tell me the money is ready to go," said Griffin. "It's all lined up. Investment bankers are more than willing to support this kind of model. They're a first-class operator when they're flying on all cylinders."

But pressure to get thousands of customers back into the store, to get warehouse distributors back on the job and product back onto the shelves grows exponentially daily.

Griffin said brand loyalty eventually erodes when customers get use to shopping at Market Basket's competitors.

"Even though there is a tremendous amount of loyalty and there is this massive support for what is happening," said Griffin, "the reality is that you have to put food on the table."

"It's been two weeks and I wanted to stop by and check things out and see how it is and I was hoping things would be back to normal," said one man, a longtime Market Basket customer, looking at the empty shelves. "It's going to be awhile before I'm back."

Shelves continue to dwindle with product and aisles at the Woburn and Chelsea stores were near empty.

The few customers inside, as off-duty Market Basket workers continued to loudly picket outside, said they came just to check on what was available before going to more expensive alternatives.

"I just paid a dollar more for milk at another store than I would here," said one shopper, indignantly.
Workers, hankering for any tidbit of news from the closed door negotiations between Arthur T and the board, remain busy stocking what few products were arriving or aggressively scrubbing empty cases and produce stands.

"It's my store -- it's everyone's store, that's in this store here. I've been here 39 years and this is what we do," said Mark Spiller, assistant manager of the Woburn store, explaining pride in their work.

He said the stores remain strong.