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September 16, 2014 
Allen Lund Company Newsletter
Written by your perishable experts 

In This Issue
The Question Remains - Can Artie T. save Market Basket
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The Question remains - Can Artie T. save Market Basket?


After weeks of empty store shelves, millions in lost sales and spoiled product, employee and customer protest and absolute uncertainty over the company's future, the Market Basket saga has started a new chapter but the theme remains: can Artie T. save Market Basket?  We do know, to the relief of thousands of Market Basket customers and employees, that he will at least be given the opportunity to do so!


On August 27th, Arthur T. Demoulas reached a deal with his family, worth more than $1.5 billion, that will see him immediately assume control of the chain.  Market Basket was valued at over $4 billion before Arthur T.'s firing but has seen millions of dollars in lost sales and expired inventory since mid June.  This deal will see Arthur T. purchase the 50.5 percent of Market Basket that was owned by a group of shareholders, including Arthur S. Demoulas. 

          "The company said Arthur T. Demoulas is returning with "day-to-day operational authority" and that he and his management team will take charge during an interim period while the transaction is completed. Co-CEOs Jim Gooch and Felicia Thornton - who were hired by Arthur S. and company after Arthur T.'s firing - will remain in place pending a closing, which is expected to occur in the next several months."Boston Herald


Arthur T. released a statement shortly after the announcement, welcoming back to work all associates that worked for the former management team:

       "The shareholders and the company would like to thank Market Basket customers and partners for their strong support through the years," Arthur T. said through a spokesperson. "Our shared goal is to return Market Basket to the supermarket that its customers have come to rely on for service, quality and best prices.  We look forward to seeing you at your local Market Basket." - The Produce News

But Arthur and his team look to have their work cut out for them.  The millions of dollars in lost sales and expired product is easy to see but the hidden costs in this equation will be the lost sales Market Basket could see after enduring such a brand tarnishing event.


Those loyal to Arthur and the Market Basket brand will be more than happy to see their doors back open.  "I'm thrilled, this is epic," said Tom Trainor, a district supervisor who oversaw 37 Market Basket stores in Massachusetts. "This has been an emotional roller coaster, and we have a big task ahead of us. And we're up for the task, and we know that we're going to prevail. We're going to get that company back up to where it should be."  But the challenge for Market Basket's new management team won't be with their loyal customers, it will be winning back those who feel wronged by the long deliberations between the Demoulas's that saw nearly all store locations' shelves empty, if not closed for business.


The beginning of the climb back to where Market Basket once was has started well.  Market Basket has seen an influx of new customers, who decided to give them a try after all of the recent national media attention.  Store shelves are sparse, some items are still missing, but store management estimates they're at about 80 percent of where they would like to be and should be back to 90 to 95 percent by this weekend. 


I can personally attest to the above.  As a California produce hauler, Allen Lund Company has seen an influx of current and new customers reaching out for refrigerated capacity into Market Basket during the last couple of weeks as Market Basket works toward re-filling their shelves.  New business is always welcome on our end but we're happy to help a company like Market Basket, who has been a staple in the greater New England produce industry for a very long time, get back onto their feet.  At this point, it is still impossible to say for sure how this will all play out in the end, but right now it looks like Market Basket is pointed in the right direction.


Matt Christ
Transportation Broker, Los Angeles Office


Matt Christ began his career with the Allen Lund Company Rochester office in 2010 and transferred to the Los Angeles Reefer Department in 2011.   Christ is a graduate of Nazareth College of Rochester with a BA in Business Administration




About Allen Lund Company: Specializing as a national third-party transportation broker with nationwide offices, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated (specializing in produce), and flatbed freight; additionally, the Allen Lund Company has an international division, which is licensed by the FMC as an OTI-NVOCC #019872NF, and a logistics and software division, ALC Logistics. 
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