The Kroger Co., parent company of Harris Teeter, announced Monday that its CEO and board chair Rodney McMullen has abruptly resigned following an internal investigation into his “personal conduct”. The probe, which began on February 21, found that McMullen’s behavior was “inconsistent with Kroger’s policy on business ethics”.
The investigation was led by independent counsel and a special board committee, but no further details were released. McMullen had been CEO since 2014 and started his career at Kroger in 1987.
This latest development comes after Kroger faced criticism for breaching a merger agreement with Albertsons Companies Inc. in December, which is seeking a $600 million termination fee and billions in legal fees. Harris Teeter has over 260 stores across eight states, and its parent company has nearly 2,800 stores in 35 states operating under 28 different names.
Lead Director Ronald Sargent has been appointed as the new chairman of the board of directors and interim CEO, effective immediately. A national search will be conducted to find a permanent CEO.
Source: https://www.charlotteobserver.com/news/business/article301316334.html