Why has Kroger CEO Rodney McMullen resigned?
By TOI Desk Report
March 3, 2025
Update on : March 3, 2025
American businessman and Kroger CEO Rodney McMullen has resigned from the grocery store chain following the allegation of an internal investigation into his personal conduct.
The grocery giant announced Monday morning that the investigation found that his personal conduct was “inconsistent” and unrelated to the business and the company’s ethics policies.
However, Kroger did not agree to disclose details about his alleged undisclosed personal conduct.
McMullen, also Kroger chairman, 64, was CEO of the company for over five decades. He first joined Kroger in 1978 as a part-time stock clerk at a Kentucky location. He worked his a high position at the company.
He has held several leadership positions including chief financial officer. McMullen was elected to the company’s board in 2003 and became the chief executive officer (CEO) in 2014.
The changes come a few months after the company cancelled its $25 billion merger with rival American grocery company Albertsons as it faced regulatory pressure from the prior US administration.
Finally, Albertsons has filed a case against Kroger for breaching its contract agreement. The company said Kroger allegedly blocked the merger and failed to exercise its “best efforts” and to secure regulatory approval of the merger.
However, the company said in the last month it was “made aware of his certain personal conduct. The issue prompted the board to conduct an investigation.
However, no additional details were revealed but Kroger said his conduct isn’t related to financial performance, operations or reporting of the company.
Meanwhile, Kroger has decided to recruit Ronald Sargent, who’s been on the company’s board of directors since 2006, as its interim CEO temporarily until any permanent replacement is fixed.
Sargent said in a press release that he, as interim CEO, is committed to working alongside a proven and experienced management team. He also expresses a hope to dedicate associates to ensure the company continues providing exceptional value for its customers.