Kroger said on Monday that longtime chief executive Rodney McMullen resigned after an investigation into his personal actions revealed a contradiction with the food chain's ethical policies.
The company said it had recognized “specific personal behavior” by McMullen on February 21 and obtained an independent lawyer to immediately begin an investigation. Kroger declined to comment on the specific actions that led to his resignation.
McMullen's disadvantage was unrelated to Kroger's finances and did not involve a company's fellow grocery chain. I said in a press release.
Ronald “Ron” Sargent, Kroger's Chief Director and former CEO of Staples, holds the role as interim chairman and CEO.
The company's board of directors has established a search committee. This is targeting the next permanent CEO.
Kroger shares fell 1% on Monday morning.
The expulsion of the long-standing leader comes shortly after the Federal Trade Commission killed Kroger's $25 billion merger and rival chain Albertsons.
The contract, which would have created the largest supermarket chain in US history, was blocked by antitrust laws.
Shortly after the upset, the Albertsons slapped Kroger in the lawsuit, claiming he breached the contract by failing to “double effort” to ensure regulatory approval.
McMullen has been the company's CEO for over 10 years. He joined the company in 1978. Starting as a part-time stock clerk Kentucky.
Sgt. has agreed to serve in a tentative role until a replacement is chosen, Kroger said.
Meanwhile, Kroger is scheduled to report its fourth quarter and annual 2024 revenue on Thursday.
The company said it expects fuelless full-year sales to ultimately fall in expectations.
