March 3 (UPI) -- The company that operates grocery chains including Kroger, Fry's and Fred Meyer on Monday announced the resignation of chairman and CEO Rodney McMullen after a probe into his "personal conduct."
The Kroger Co. said in a news release that Rodney McMullen tendered his resignation following the outcome of a board of directors investigation into personal conduct that "was inconsistent with Kroger's Policy on Business Ethics."
The company did not offer any details on McMullen's alleged violations of the policy, but stressed it was "not related to the company's financial performance, operations or reporting, and it did not involve any Kroger associates."
McMullen was appointed to the board in 2003 and became CEO in 2014.
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Kroger announced Lead Director Ronald "Ron" Sargent will step in immediately as chairman of the board and interim CEO. Mark Sutton was announced as the company's lead independent 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, who has served on the board since 2006, said in the news release.
The news comes after the board was "made aware of certain personal conduct" by McMullen on Feb 21 and an immediate investigation was launched by outside independent counsel and overseen by a special board of directors committee.
A proposed $24.6 billion merger between Kroger and competitor Albertson's was called off in December amid regulatory pressure from the Biden administration. Albertson's filed a breech of contract suit against Kroger, alleging the latter company had caused the merger to be blocked.
