The CEO of grocery chain Kroger has abruptly resigned amid an ongoing investigation into his conduct.
Last month, Kroger acknowledged that it was "aware of certain personal conduct" related to its CEO, Rodney McMullen, and said that conduct had prompted an investigation by the Cincinatti-based company's board.
No further details were given at that time, other than that the investigation had nothing to do with Kroger's "financial performance, operations, or reporting" and that it didn't involve any Kroger employees.
With McMullen out, Ronald Sargent, who has sat on Kroger's board of directors since 2006, will take over as an interim CEO until a permanent replacement is installed.
“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 press statement on Monday.
Prior to his exit, McMullen had worked with Kroger in some capacity for nearly 50 years. He began his employment at the company as a part-time stock clerk in Kentucky in 1978 and worked his way into management and eventually the company's c-suite. He was elected to Kroger's board in 2003 and became its CEO in 2014.
During his time at the helm, Kroger's total sales grew from $98 billion to $150 billion, and the company acquired Harris Teeter and Roundy's supermarkets along the way.
Late last year, McMullen was trying to vacuum up a third grocery store — Albertsons — but the courts blocked the $25 billion attempted acquisition citing regulatory concerns.
The deal died after Albertsons sued Kroger, alleging that McMullen's company had caused the merger to falter and failed to exercise its "best efforts" to take "any and all actions" to secure regulatory approval of the merger.
Mark Sutton, Kroger's lead independent director, issued a statement praising Sargent as McMullen's replacement and providing investors with a roadmap for the company moving forward.
“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,” Sutton said. “Kroger will continue to deliver for our customers, invest in our associates, strengthen our communities, and reward our shareholders under Ron’s leadership.”
Kroger operates more than 2,700 grocery stores, with locations in 35 states and Washington, DC.
