OAN Staff James Meyers
9:51 AM – Monday, March 3, 2025
The grocery store chain Kroger announced on Monday that its longtime CEO, Rodney McMullen, has stepped down following an investigation into his personal conduct which revealed he was violating the company’s ethics policy.
Advertisement
On February 21st, the chain said it was made aware of “certain personal conduct” by McMullen and obtained immediate independent counsel to begin an investigation. However, Kroger declined to comment on what the specific reason was for his resignation.
The grocery store chain said in a press release that McMullen’s detrimental conduct was unrelated to Kroger’s finances, and did not involve any employees of the company.
Kroger’s lead director, former Staples CEO Ronald “Ron” Sargent, has stepped into the role as interim chairman and chief executive officer.
As a result, the company’s board of executives developed a search committee, which has been tasked to find the next permanent CEO.
Meanwhile, Kroger’s shares fell 1% on Monday morning, in wake of the announcement.
The move comes after the Federal Trade Commission (FTC) stopped Kroger’s $25 billion merger with the grocery store chain, Albertsons.
The massive deal, which would have created the largest supermarket chain in U.S. history, was blocked on antitrust grounds.
After the deal was blocked, Albertsons hit Kroger with a lawsuit, alleging that it violated their contract by failing to make “best efforts” to secure regulatory approval.
McMullen started with the company in 1978 as a part-time stock clerk. He served as the company’s chief executive for over 10 years.
The company also said that Sargent has agreed to serve in the interim role until a replacement is chosen.
On Thursday, Kroger will report its fourth quarter and annual 2024 earnings.
The company stated that it expects its full-year adjusted earnings per share to beat predictions.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Advertisements below
Be the first to comment