Kroger CEO Resigns After "Personal Conduct" Investigation

Kroger Co. announced Monday that CEO Rodney McMullen has resigned following an internal investigation into his personal conduct. The Cincinnati-based company stated that while McMullen’s actions were unrelated to business operations, they were “inconsistent with Kroger’s Policy on Business Ethics”.

According to Kroger’s statement, the board was made aware of McMullen’s conduct on February 21st and immediately retained independent counsel to investigate. The inquiry was overseen by a special board committee. The company also reassured that the investigation was not connected to financial performance, operations, or reporting and did not involve any Kroger employees.

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Longtime board member, Ronald Sargent, has been appointed chairman and interim CEO. Sargent has been with Kroger’s board since 2006 and served as lead director since 2017. He previously served as chairman and CEO of Staples.

McMullen, who joined Kroger in 1978 as a part-time stock clerk in Lexington, Kentucky, rose through the company’s ranks over the decades. He became chief financial officer in 1995, chief operating officer in 2009, and was named CEO in 2014 before taking on the role of chairman the following year.

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Kroger shares fell more than 3.5% ahead of Monday’s market open following the announcement. The company has begun a search for a permanent CEO.

His departure comes just months after the collapse of a $25 billion merger with Albertsons, which later sued Kroger for breach of contract. If successful, this deal would have been the largest in U.S. grocery industry history.

The proposed merger, first announced in 2022, was blocked in December by two judges who determined it would likely reduce competition and drive up prices. Albertsons subsequently filed a lawsuit against Kroger, accusing the company of failing to take all necessary steps to secure regulatory approval.

Kroger CEO Resigns After “Personal Conduct” Investigation  was originally published on ronethebuzzcincy.staging.go.ione.nyc