The chief executive officer and board chair of The Kroger Co. abruptly resigned Monday following an internal investigation into his “personal conduct.”
The investigation began Feb. 21 into Kroger CEO Rodney McMullen’s conduct, and it was not related to Kroger’s “financial performance, operations or reporting,” the Cincinnati-based grocery store chain said in a news release Monday.
McMullen’s conduct was “inconsistent with Kroger’s policy on business ethics,” the news release stated. Kroger said it hired independent counsel to conduct the investigation, which was overseen by a special board committee.
No other details were available. Kroger officials declined to comment Monday.
McMullen had been CEO since 2014. The Kentucky native started his career at Kroger stocking shelves while attending the University of Kentucky, the Lexington Herald Leader, a McClatchy newspaper, reported.
It’s the latest blot for Kroger.
In December, Albertsons Companies Inc. sued Kroger for breaching a merger agreement by refusing to divest assets necessary for antitrust approval and ignoring regulators’ feedback, among other issues, according to the Idaho-based grocery chain. Albertsons is seeking a $600 million termination fee and billions in legal fees.
Matthews-based Harris Teeter has been a subsidiary of Kroger since being acquired in 2014 for $2.4 billion. The supermarket chain has over 260 stores in eight states, according to Harris Teeter’s website. Harris Teeter has 60 stores in the Charlotte region.
Harris Teeter officials did not immediately respond to requests for comment Monday.
Replacing McMullen at Kroger
Lead Director Ronald Sargent has been appointed chairman of the board of directors and interim CEO, effective immediately, Kroger said. Mark Sutton has been named as lead independent director.
Sargent has been a Kroger director since 2006 and has served as the lead director of Kroger since 2017, according to the company. He has 35 years of retail operation experience, including CEO of Staples.
He currently serves on Wells Fargo and Five Below boards.
Kroger said it will conduct a national search for a permanent CEO.
Founded in 1883, Kroger has nearly 2,800 stores in 35 states operating under 28 different names.
Source: American Military News