Kroger CEO Rodney McMullen resigns after investigation into 'personal conduct': officials

CINCINNATI - Rodney McMullen resigned from his post as CEO of Kroger after an internal investigation into his personal conduct, the company announced Monday.

McMullen's removal comes months after Kroger ended a $25 billion merger with Albertsons under his leadership. Albertsons sued Kroger for breach of contract, arguing they tanked the deal, FOX News reported. 

The Kroger-Albertsons deal would have been the largest merger in the history of the grocery industry.

What we know:

"On February 21, the Board was made aware of certain personal conduct by Mr. McMullen and immediately retained outside independent counsel to conduct an investigation, which was overseen by a special Board committee," The Kroger Co. said in an online news release. "Mr. McMullen's conduct is not related to the Company's financial performance, operations or reporting, and it did not involve any Kroger associates."

Shoppers are seen in a Kroger supermarket on October 14, 2022, in Atlanta, Georgia. - Economic prospects are becoming "more pessimistic" in the United States on growing worries of weaker demand, the Federal Reserve said in a report October 19, 2022,

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What we don't know:

The specific details of the matter were not disclosed.

What's next:

Ronald Sargent has been appointed chairman of the board of directors and interim CEO in McMullen's place. He will serve his role until a new CEO is appointed.

Who is Ronald "Ron" Sargent?

Sargent has been a Kroger director since 2006 and has served as the lead director since 2017. He spent the first 10 years of his professional career at Kroger, working in several roles across stores, sales, marketing, manufacturing and strategy. Sargent is a veteran retail operator and leader with 35 years of experience, including as the chairman and CEO of Staples, Inc., Kroger said.

Currently, Sargent serves on the boards of Wells Fargo & Company and Five Below, Inc., and will step down from certain committees in his new role.

What they're saying:

"Over the years, Ron has played an integral role in the development and approval of Kroger's strategy, which has led us to the position of strength where we are today," Mark Sutton, Kroger's newly appointed lead independent director, said in a statement. "Kroger will continue to deliver for our customers, invest in our associates, strengthen our communities, and reward our shareholders under Ron's leadership."

"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 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 ten 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," he added.

Who is Rodney McMullen?

McMullen, 64, began his career with Kroger in 1978 as a part-time stock clerk and bagger at a store in Lexington, Kentucky. He worked his way up through the company, becoming chief financial officer in 1995 and chief operating officer in 2009. 

Rodney McMullen, chief executive officer of Kroger Co., during a Bloomberg Television interview in New York, US, on Wednesday, May 10, 2023. McMullen discussed food prices and inflation. Photographer: Jeenah Moon/Bloomberg via Getty Images

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