(Bloomberg) — Kroger Co.’s interim leader urged employees to forge ahead following an abrupt exit of his predecessor, according to a recording of an internal meeting viewed by Bloomberg News.
“With your help, I aim to move forward. We got a lot to do. We gotta get there with direction. And I think we gotta get there with speed,” Ron Sargent told staff Thursday after the company reported its quarterly earnings.
Kroger said Monday that long-tenured Chief Executive Officer Rodney McMullen resigned following the board’s investigation into his personal conduct without specifying what it found. The company said Sargent, who has been on the board for almost 20 years, will serve as interim CEO during its search for a permanent replacement.
McMullen did not immediately respond to a request for comment.
Kroger said McMullen’s conduct was unrelated to the company’s financial performance and didn’t involve Kroger employees. While the behavior didn’t involve its operations, Kroger said it was inconsistent with its policy on “business ethics.”
Sargent said he has been friends with McMullen for 40 years and that their relationship won’t change. McMullen has had a “brilliant” career of more than 40 years at the company that employees should respect and honor, he added.
“He’s a good man, and he’ll always be a good man,” Sargent told employees.
Sargent, who met with division presidents earlier in the week, went on to note that Kroger should focus on its core business, including stores and e-commerce, and examine everything from the customers’ point of view. “Our competitors are not slowing down. They are just as fast, and they are getting faster all the time,” he said.
A company spokeswoman declined to comment.
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