Kroger CEO Abruptly Resigns Following Ethics Investigation

The company launched the investigation last month after being "made aware of certain personal conduct" involving McMullen, though specific details of the findings were not disclosed. Kroger emphasized that the issues were unrelated to the company's "financial performance, operations or reporting, and it did not involve any Kroger associates." Ronald Sargent, a board member since 2006, has been appointed interim CEO while the company searches for a permanent replacement. "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. McMullen's departure marks the end of a nearly five-decade career with the company. He started as a part-time stock clerk at a Kentucky store in 1978 and steadily ascended through the organization, serving in several leadership positions including chief financial officer. He was elected to Kroger's board of directors in 2003 and became CEO in 2014. The leadership change comes at a challenging time for the Cincinnati-based retailer. Just months ago, Kroger abandoned its proposed $25 billion merger with rival Albertsons amid regulatory pressure from the previous U.S. administration. Following the collapse of the deal, Albertsons filed a lawsuit against Kroger for breach of contract, claiming Kroger failed to exercise its "best efforts" to secure regulatory approval. Kroger shares fell approximately 1% in premarket trading following the announcement. With nearly 2,800 stores across 35 states, Kroger is one of America's largest grocery retailers, operating under various banners including Kroger, Ralphs, Fred Meyer, and Harris Teeter.

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