Kroger on Monday said its longtime chief executive Rodney
McMullen has stepped down after a probe into his personal conduct revealed
inconsistencies with the grocery chain’s ethics policy.
The company said it was made aware of “certain personal
conduct” by McMullen on Feb. 21 and immediately obtained independent counsel to
launch an investigation. Kroger declined to comment on the specific conduct
that led to his resignation.
McMullen’s adverse conduct is unrelated to Kroger’s
finances, and did not involve any company associates, the grocery chain said in
a press release.
Kroger’s lead director, former Staples CEO Ronald “Ron”
Sargent, has stepped into the role as interim chairman and chief executive
officer.
The company’s board of directors has formed a search
committee, which is scouring for the next permanent chief executive.
Kroger shares dipped 1% on Monday morning.
The longtime leader’s ouster comes soon after the Federal
Trade Commission killed Kroger’s $25 billion merger with rival chain
Albertsons.
The deal – which would have created the largest supermarket
chain in US history – was blocked on antitrust grounds.
Soon after the upset, Albertsons slapped Kroger with a
lawsuit, alleging it violated their contract by failing to make “best efforts”
to secure regulatory approval.
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