Kroger CEO Resigns Suddenly Following Investigation into Personal Conduct

Kroger CEO Rodney McMullen stepped down immediately after an investigation revealed that his personal conduct was "inconsistent" with the company's ethics policies.

Last month, Kroger had "become aware of certain personal conduct" by McMullen, which became the basis for a board investigation. Beyond these few generalities, the company would not comment further other than to say that such conduct, "did not affect, in any way, the financial performance or operations or reporting of the Company, and did not involve any Kroger associates."

Ronald Sargent, who has served on Kroger's board of directors since 2006, will be interim CEO until a permanent successor is named.

“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 release Monday.

The dramatic change came only months after the Kroger supermarket empire dropped its $25 billion merger with rival Albertsons under regulatory pressure exerted by the prior United States' administration.

In retaliation, Albertsons filed against Kroger for breach of contract, stating that the conduct of Kroger blocked merger approval altogether and that such behavior amounted to failure to utilize best efforts and to take any and all actions to secure regulatory approval for the merger.

Kroger (KR) shares were down about 1% early in the preliminary trading session.