Kroger CEO resigns after board investigation into his 'personal conduct'

Kroger Co. CEO Rodney McMullen has resigned from his post following an investigation into his personal conduct, the company announced Monday.Kroger said in a statement that McMullen's conduct was "unrelated to the business" but was still "inconsistent with Kroger's Policy on Business Ethics." 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."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. Mr. McMullen's conduct is not related to the Company's financial performance, operations or reporting, and it did not involve any Kroger associates," the company said in a statement.Ronald Sargent has now been appointed chairman of the board of directors and interim CEO in McMullen's place.KROGER-ALBERTSONS MERGER HEADS TO TRIAL"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-ALBERTSONS MERGER: IS IT GOOD OR BAD FOR SHOPPERS?"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 continued.Sargent has been a Kroger director since 2006 and has served as the lead director of Kroger 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 says.GET FOX BUSINESS ON THE GO BY CLICKING HEREThe Kroger-Albertsons deal would have been the largest merger in the history of the grocery industry.Reuters contributed to this report.Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business