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.
McMullen served as the company’s chief executive for more than 10 years. He joined the company in 1978, starting as a part-time stock clerk in Kentucky.
Sargent has agreed to serve in the interim role until a replacement is chosen, Kroger said.
Meanwhile, Kroger is set to report its fourth quarter and annual 2024 earnings on Thursday.
The company said it expects its full-year sales without fuel to fall at the high end of expectations, and its full-year adjusted earnings per share to beat predictions.
