U.S. grocery chain Kroger has announced that its chairman and CEO, Rodney McMullen, resigned from the company on 3 March.
On 21 February, Kroger’s board of directors was made aware of “certain personal conduct” carried out by McMullen, so it retained outside independent counsel to conduct an investigation overseen by a special committee, Kroger said in a press release about the news.
The investigation found that McMullen’s personal conduct, “while unrelated to the business, was inconsistent with Kroger's Policy on Business Ethics.”
"Mr. McMullen's conduct is not related to the company's financial performance, operations, or reporting, and it did not involve any Kroger associates,” Kroger said.
As a result of the investigation, Kroger’s board has appointed Ronald Sargent, who previously served as lead director of the firm, as chairman of the board of directors and interim CEO, effective immediately. Mark Sutton will now serve as Kroger's lead director.
"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.
While Sargent serves in an interim role, Kroger’s board has also formed a search committee and engaged an external firm to conduct a search for the chain’s next CEO.
McMullen’s resignation follows a difficult financial period for the retailer, following its failed merger with fellow U.S. grocery chain Albertsons late last year. Not long after the failed merger, Kroger announced it was cutting 200 positions at its corporate offices in Cincinnati, Ohio, U.S.A.
Elsewhere, C&S Wholesale Grocers, which was set to acquire around 600 stores if the failed merger came to pass, is laying off at least 76 employees. In a WARN notice filed in Hawaii, C&S said the job cuts would primarily affect customer service managers and workers at its units in Hawaii, Vermont, New Jersey, Texas, and New York.
