Rodney McMullen, the longtime CEO of Kroger, has resigned effective immediately following an internal investigation into his personal conduct.
The grocery chain announced Monday that the probe found McMullen’s actions to be “inconsistent” with the company’s ethics policies, though it emphasized that the issue was unrelated to the company’s financial performance, operations, or reporting.
The company revealed that its board became aware of concerns regarding McMullen’s personal conduct on February 21 and subsequently launched an investigation, led by an independent outside counsel. While Kroger did not disclose specific details about the findings, it clarified that the issue did not involve any Kroger employees.
Ronald Sargent, a veteran retail executive who has served on Kroger’s board since 2006, has been appointed interim CEO and chairman while the company searches for a permanent replacement.
McMullen has been with Kroger for nearly five decades, beginning as a part-time stock clerk in 1978 before rising through the ranks. He served as the company’s chief financial officer and later joined its board in 2003 before being named CEO in 2014. Under his leadership, Kroger expanded its digital and e-commerce presence and navigated challenges posed by shifting consumer habits and industry competition.
His departure follows Kroger’s decision to abandon a $25 billion merger with Albertsons due to regulatory opposition. The failed deal has led to ongoing legal disputes, with Albertsons suing Kroger for breach of contract, alleging the company did not take sufficient steps to secure regulatory approval.
With Sargent stepping in as interim CEO, Kroger leadership has assured customers and stakeholders that the company remains committed to its business strategy. Sargent, a former CEO of Staples, emphasized his commitment to ensuring stability during the transition.
Kroger’s board has established a search committee to identify a new CEO who will guide the company through its next phase.
CBS News, FOX Business, CNN, and Business Insider contributed to this report.
