Kroger CEO Rodney McMullen is resigning following a probe into his personal conduct, the grocery chain said Monday.
McMullen, who was both the chairman and CEO, is out after a company board investigation found that his personal conduct, “was inconsistent with Kroger’s Policy on Business Ethics,” the company said on Monday. Yet his behavior was unrelated to business, Kroger added in the statement announcing his resignation.
Ron Sargent, Kroger’s lead director, will serve as the interim chairman of the board of directors and CEO, effective immediately, the company said.
McMullen’s resignation stems from an investigation conducted by an independent counsel into certain behavior that the company’s board became aware of on Feb. 21.
“Mr. McMullen’s conduct is not related to the Company’s financial performance, operations or reporting, and it did not involve any Kroger associates,” Kroger said Monday.
Kroger’s board has formed a search committee to seek McMullen’s replacement.
“As interim CEO, I am committed to working alongside our proven and experienced management team and dedicated associates to ensure Kroger continues providing exceptional value for our customers,” Sargent, the interim CEO, said in a statement. “Kroger has been a special place throughout my retail career after spending summers in college working in stores, as well as my first 10 years after business school at corporate headquarters, before more recently serving as lead independent director. My decades here have given me a full appreciation of what makes Kroger unique, and I am excited to work even more closely with this talented team. I plan to be a steady, but active hand in the execution of our strategy.”
