“Kroger CEO Rodney McMullen Steps Down Amid Board Investigation into Personal Conduct”

Kroger, a well-known grocery chain, announced on Monday that its CEO, Rodney McMullen, has resigned. This decision came after a board investigation into his personal conduct, which Kroger concluded was inconsistent with the company’s ethics policy.

Kroger clarified that McMullen’s actions did not involve any employees and were unrelated to the company’s financial performance. This leadership change arrives during a challenging period for Kroger, as they grapple with the recent collapse of their merger with Albertsons.

The board discovered concerns regarding McMullen’s personal conduct on February 21 and quickly sought external counsel for an investigation. They assured that these issues were not connected to business operations.

In the meantime, Ronald Sargent, the lead director, has stepped in as interim CEO. He will also take on McMullen’s role as chairman. Sargent, who has been with Kroger since 2006, is committed to guiding the company through this transition. “I plan to be a steady, but active, hand in the execution of our strategy,” he said.

Rodney McMullen had a long career at Kroger, starting as a part-time stock clerk in 1978. He became a board member in 2003 and was appointed CEO in 2014 before taking on the chairman role in 2015. His departure comes just days before Kroger’s fourth-quarter earnings report.

Recently, Kroger faced a significant setback when federal and state regulators blocked its $25 billion merger with Albertsons. This deal would have been the largest grocery merger in U.S. history. Following the ruling, Albertsons decided to sue Kroger, alleging that the company did not do enough to obtain regulatory approval.

The Federal Trade Commission had argued that the merger would hurt competition and lead to higher prices for consumers. Judge Adrienne Nelson of the U.S. District Court in Oregon agreed, and a state court in Washington also ruled against the deal shortly after. Albertsons then withdrew from the merger and sought billions in damages from Kroger, a claim that Kroger disputes.

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