Latest news with #McMullen
USA Today
4 days ago
- Business
- USA Today
Kroger settles with C&S Wholesale after failed $25 billion Albertsons merger
Kroger announced Aug. 11 that it has settled litigation with C&S Wholesale Grocers, which sued the Cincinnati-based supermarket giant in the wake of a failed $25 billion merger with Albertsons. The Keene, New Hampshire-based supplier and retailer was set to acquire nearly 600 divested stores from Kroger and Albertsons upon completion of the deal. C&S Wholesale claimed Kroger owed it a $125 million termination fee in the event the merger was called off. Kroger said all claims were resolved. Terms of the settlement were confidential. 'We are pleased to resolve the claims from C&S, and we look forward to a friendly relationship with them going forward,' said Interim CEO Ron Sargent, in a statement. Would-be acquirer of stores was part of merger's failure C&S Wholesale was seen as part of the reason for the merger's failure. While the company supplies thousands of grocery stores nationwide, its retail operations were modest: a couple dozen stores. In the successful antitrust cases against the merger, regulators argued C&S Wholesale would not be a strong enough competitor to a super-sized Kroger. C&S Wholesale executives also faced several awkward questions during antitrust hearings when it was revealed they had mocked their own company's retail investments. Litigation against Kroger in the aftermath of the abandoned merger is not over: The Boise, Idaho-based retailer announced it was also suing Kroger the same day it pulled out of the deal for allegedly botching regulatory approval. Albertsons' lawsuit is also seeking to collect a breakup fee worth $600 million. Details of Kroger CEO's abrupt exit sought in two lawsuits In that case, Albertsons is seeking the reason that Kroger's long-serving CEO Rodney McMullen resigned in March following an ethics investigation. Kroger has offered few details of McMullen's exit, saying only that "certain personal conduct" by McMullen was 'inconsistent' with its ethics policy. Albertsons argues that Kroger's ethical conduct, while McMullen was at the helm, is relevant to how it pursued its efforts to win merger approval. McMullen's departure has also come up in another lawsuit against Kroger. Grammy-nominated singer Jewel has sued the grocer for allegedly cutting her out of the Kroger Wellness Festival, which she helped organize in its early years. In that case, a judge has ordered McMullen to explain the details of his resignation, which may later be revealed in court records.
4 days ago
- Politics
As Canada wildfires choke US with smoke, Republicans demand action. But not on climate change
The sternly worded statements and letters are filled with indignation and outrage: Republican U.S. lawmakers say Canada has done too little to contain wildfires and smoke that have fouled the air in several states this summer. 'Instead of enjoying family vacations at Michigan's beautiful lakes and campgrounds, for the third summer in a row, Michiganders are forced to breathe hazardous air as a result of Canada's failure to prevent and control wildfires,' read a statement last week from the state's GOP congressional delegation, echoing similar missives from Republicans in Iowa, New York, North Dakota, Minnesota and Wisconsin. They've demanded more forest thinning, prescribed burns and other measures to prevent fires from starting. They've warned the smoke is hurting relations between the countries and suggested the U.S. could make it an issue in tariff talks. But what they haven't done is acknowledge the role of climate change — a glaring and shortsighted omission, according to climate scientists. It also ignores the outsized U.S. contribution to heat-trapping gases from burning fossil fuels like coal and gas that cause more intense heat waves and droughts, which in turn set the stage for more destructive wildfires, scientists say. 'If anything, Canada should be blaming the U.S. for their increased fires,' said Jennifer Francis, a climate scientist at the Woodwell Climate Research Center in Cape Cod, Massachusetts. On Tuesday, the Canadian government announced almost $46 million in funding for wildfire prevention and risk assessment research projects. But Corey Hogan, parliamentary secretary to the federal energy and natural resources minister, said international cooperation is needed. 'There's no people that want to do more about wildfires than Canadians,' Hogan said. 'But I think this also underlines the international challenges that are brought on by climate change ... we need to globally tackle this problem.' The country has 'been fighting wildfires in this country at unprecedented rates since 2023,' when Canada saw its largest wildfire on record, said Ken McMullen, president of the Canadian Association of Fire Chiefs. This year's first fire started in April, one of the earliest on record, and 2025 is now the second-worst year. As of Thursday, more than 700 wildfires were burning across the country, two-thirds of them out of control, with more than 28,000 square miles (72,520 square kilometers) burned in 4,400 wildfires so far this year, according to the Canadian Interagency Forest Fire Centre. That's almost five times the surface area that's burned so far in the U.S. this year. Most wildfires are started by people, sometimes on purpose but mostly by mistake, though McMullen said lightning is the culprit in many of Canada's fires, especially in remote areas. McMullen said he has no interest in debating the role of climate change, but data show that something has changed. Sloughs and basins have dried up and water that once lapped at people's back doors in Canada's lake communities now is often hundreds of feet away. 'People can make up their own mind as to why that is,' he said. 'But something clearly has changed.' President Donald Trump has called climate change a hoax — a belief echoed by many in the GOP — and his administration has worked to dismantle and defund federal climate science and data collection, with little to no pushback from Republicans in Congress. He's proposed to revoke the scientific finding that carbon dioxide and other greenhouse gases endanger public health and welfare — the central basis for U.S. climate change action. He's declared a national energy emergency to expedite fossil fuel development, canceled grants for renewable energy projects and ordered the U.S. to withdraw from the Paris Climate Agreement, aimed at limiting long-term global warming to 2.7 degrees Fahrenheit (1.5 degrees Celsius) above preindustrial levels. The Associated Press reached out to more than half a dozen Republicans who criticized Canada but none returned phone calls or emails. Democratic Rep. Chellie Pingree of Maine said the wildfires are jeopardizing health and air quality in her state, too, but faulted Republicans for failing to meet the crisis head on — beginning by acknowledging climate change. 'Rather than accept this reality and work together to find proactive, common-sense solutions for preventing and mitigating these fires, Republicans are burying their heads in the sand,' she said. Wisconsin Rep. Gwen Moore, a Democrat, criticized her Republican colleagues' letter to Canada's U.S. ambassador, saying those 'who are in denial about climate change shouldn't be writing letters prescribing people's actions to try to contain it.' McMullen, the Canadian wildfire expert, said battling the fires isn't as simple as many seem to believe. The country and its territories are vast and fires are often in remote areas where the best — and sometimes only — course of action if there are no residents or structures is to let them burn or 'it is going to just create another situation for us to deal with in a year or two or 10 or 20 years from now,' McMullen said. Prescribed burns to clear underbrush and other ignition sources are used in some areas, but aren't practical or possible in some forests and prairies that are burning, experts said. McMullen has advocated for a Canadian forest fire coordination agency to help deploy firefighters and equipment where they're needed. But as for stopping worsening fires, 'I don't think there's much they can do,' said University of Michigan climate scientist Jonathan Overpeck. He noted that hotter temperatures are melting permafrost in northern Canada, which dries out and makes the vast boreal forests far more likely to burn. Instead, the two countries should collaborate on climate change solutions "because our smoke is their smoke, their smoke is ours,' Overpeck said. 'As long as this trend of warming and drying continues, we're going to get a worsening problem. 'The good news is ... we know what the cause is ... we can stop it from getting worse.'
Winnipeg Free Press
5 days ago
- Politics
- Winnipeg Free Press
As Canada wildfires choke US with smoke, Republicans demand action. But not on climate change
The sternly worded statements and letters are filled with indignation and outrage: Republican U.S. lawmakers say Canada has done too little to contain wildfires and smoke that have fouled the air in several states this summer. 'Instead of enjoying family vacations at Michigan's beautiful lakes and campgrounds, for the third summer in a row, Michiganders are forced to breathe hazardous air as a result of Canada's failure to prevent and control wildfires,' read a statement last week from the state's GOP congressional delegation, echoing similar missives from Republicans in Iowa, New York, North Dakota, Minnesota and Wisconsin. They've demanded more forest thinning, prescribed burns and other measures to prevent fires from starting. They've warned the smoke is hurting relations between the countries and suggested the U.S. could make it an issue in tariff talks. But what they haven't done is acknowledge the role of climate change — a glaring and shortsighted omission, according to climate scientists. It also ignores the outsized U.S. contribution to heat-trapping gases from burning fossil fuels like coal and gas that cause more intense heat waves and droughts, which in turn set the stage for more destructive wildfires, scientists say. 'If anything, Canada should be blaming the U.S. for their increased fires,' said Jennifer Francis, a climate scientist at the Woodwell Climate Research Center in Cape Cod, Massachusetts. On Tuesday, the Canadian government announced almost $46 million in funding for wildfire prevention and risk assessment research projects. But Corey Hogan, parliamentary secretary to the federal energy and natural resources minister, said international cooperation is needed. 'There's no people that want to do more about wildfires than Canadians,' Hogan said. 'But I think this also underlines the international challenges that are brought on by climate change … we need to globally tackle this problem.' The country has 'been fighting wildfires in this country at unprecedented rates since 2023,' when Canada saw its largest wildfire on record, said Ken McMullen, president of the Canadian Association of Fire Chiefs. This year's first fire started in April, one of the earliest on record, and 2025 is now the second-worst year. As of Thursday, more than 700 wildfires were burning across the country, two-thirds of them out of control, with more than 28,000 square miles (72,520 square kilometers) burned in 4,400 wildfires so far this year, according to the Canadian Interagency Forest Fire Centre. That's almost five times the surface area that's burned so far in the U.S. this year. Most wildfires are started by people, sometimes on purpose but mostly by mistake, though McMullen said lightning is the culprit in many of Canada's fires, especially in remote areas. McMullen said he has no interest in debating the role of climate change, but data show that something has changed. Sloughs and basins have dried up and water that once lapped at people's back doors in Canada's lake communities now is often hundreds of feet away. 'People can make up their own mind as to why that is,' he said. 'But something clearly has changed.' Denying climate change President Donald Trump has called climate change a hoax — a belief echoed by many in the GOP — and his administration has worked to dismantle and defund federal climate science and data collection, with little to no pushback from Republicans in Congress. He's proposed to revoke the scientific finding that carbon dioxide and other greenhouse gases endanger public health and welfare — the central basis for U.S. climate change action. He's declared a national energy emergency to expedite fossil fuel development, canceled grants for renewable energy projects and ordered the U.S. to withdraw from the Paris Climate Agreement, aimed at limiting long-term global warming to 2.7 degrees Fahrenheit (1.5 degrees Celsius) above preindustrial levels. The Associated Press reached out to more than half a dozen Republicans who criticized Canada but none returned phone calls or emails. Democratic Rep. Chellie Pingree of Maine said the wildfires are jeopardizing health and air quality in her state, too, but faulted Republicans for failing to meet the crisis head on — beginning by acknowledging climate change. 'Rather than accept this reality and work together to find proactive, common-sense solutions for preventing and mitigating these fires, Republicans are burying their heads in the sand,' she said. Wisconsin Rep. Gwen Moore, a Democrat, criticized her Republican colleagues' letter to Canada's U.S. ambassador, saying those 'who are in denial about climate change shouldn't be writing letters prescribing people's actions to try to contain it.' Difficult solutions McMullen, the Canadian wildfire expert, said battling the fires isn't as simple as many seem to believe. The country and its territories are vast and fires are often in remote areas where the best — and sometimes only — course of action if there are no residents or structures is to let them burn or 'it is going to just create another situation for us to deal with in a year or two or 10 or 20 years from now,' McMullen said. Prescribed burns to clear underbrush and other ignition sources are used in some areas, but aren't practical or possible in some forests and prairies that are burning, experts said. McMullen has advocated for a Canadian forest fire coordination agency to help deploy firefighters and equipment where they're needed. Wednesdays What's next in arts, life and pop culture. But as for stopping worsening fires, 'I don't think there's much they can do,' said University of Michigan climate scientist Jonathan Overpeck. He noted that hotter temperatures are melting permafrost in northern Canada, which dries out and makes the vast boreal forests far more likely to burn. Instead, the two countries should collaborate on climate change solutions 'because our smoke is their smoke, their smoke is ours,' Overpeck said. 'As long as this trend of warming and drying continues, we're going to get a worsening problem. 'The good news is … we know what the cause is … we can stop it from getting worse.' ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Business Insider
5 days ago
- Business
- Business Insider
Kroger's ex-CEO ordered to reveal why he resigned — and '90s pop star Jewel is the driving force
Kroger's ex-CEO mysteriously resigned from the supermarket giant earlier this year — and now, thanks to a nearly two-year-old lawsuit that the singer-songwriter Jewel is behind, he's been ordered to reveal the reason for his exit. Attorneys for Rodney McMullen have argued in recent court documents that his March resignation has absolutely nothing to do with the "You Were Meant For Me" singer's 2023 contract breach lawsuit against Kroger and questions about it in a deposition are aimed at "annoying and embarrassing" him. McMullen is not named as a defendant in the lawsuit and his attorneys had sought a protective order in the case playing out in an Ohio court that would bar questioning about the circumstances surrounding his abrupt resignation. Kroger's filings with the Securities and Exchange Commission show that McMullen forfeited $11.2 million in bonus and stock payments when he stepped down from the CEO role he held for more than 10 years. On August 1, Hamilton County Common Pleas Court Judge Christian Jenkins ruled that McMullen must explain in a written response what led to his exit from Kroger as well as the identities of those involved. The judge noted in his order that McMullen "argues that this line of questioning is completely irrelevant, is not proportional to the needs of the case, and would be embarrassing to Mr. McMullen," while the plaintiffs argue that McMullen would be a witness in their case and that the questions about his employment history are "routine." The plaintiffs in the case — Wellness Your Way Festival, LLC, which Jewel is an owner of, and Inclusion Companies, LLC — argue that details around McMullen's resignation could be relevant to his credibility and "the existence of an allegedly corrupt corporate culture at Kroger," Jenkins wrote. When announcing McMullen's resignation in March, Kroger said McMullen had resigned after an investigation into his "personal conduct." The conduct, the grocery chain said, was "unrelated to the business," but added it was "inconsistent with Kroger's Policy on Business Ethics." The judge pointed to this announcement in his recent ruling, saying, "Based on this, it is plausible that this evidence could reflect on Mr. McMullen's credibility or Kroger's corporate culture, as alleged by Plaintiff." "However, without knowing the basis for the alleged embarrassment, it is impossible to weigh it against the relevancy and proportionality," Jenkins wrote. It remains to be seen whether McMullen's response — which was due August 8 — would become public. The judge said that if he grants McMullen's request for a protective order, his response would be made part of the record under seal. If Jenkins denies the order, it will not be entered into the record. Jenkins ordered that McMullen's response be hand-delivered to the judge's chambers. It is not clear if McMullen's response had been submitted. Attorneys for both McMullen and Kroger did not immediately respond to a request for comment by Business Insider on Wednesday. Brian O'Connor, a lawyer for the plaintiffs, told Business Insider that his clients are "pleased that the court is not giving Mr. McMullen a free pass to avoid testifying just because the former CEO's lawyer says that answering questions would be embarrassing." "As attorneys, we expect that court orders are obeyed," O'Conner said, adding that he has not been provided with a copy of McMullen's response. The lawsuit against Kroger involves its annual Wellness Festival The 2023 lawsuit against Kroger stems from allegations of a breach of partnership agreement between the supermarket chain and Jewel and her business partner, Trevor Drinkwater, the CEO of Inclusion, over Kroger's annual Wellness Festival event in Cincinnati. The court papers say that Jewel, born Jewel Kilcher, and Drinkwater conceived of the wellness festival and entered into a five-year partnership agreement with Kroger to put it on. The festivals took place in 2018, 2019 and 2021 with Jewel performing at the events, the court documents say, alleging that Kroger "unilaterally terminated the partnership" on "wholly manufactured and easily disprovable grounds." The lawsuit says that Kroger went on to produce a "highly profitable" year-four event in 2022 and an even more profitable event in 2023 "using the know-how, marketing materials, contracts, and sponsor lists that Plaintiffs had contributed to the partnership." The plaintiffs allege in the court papers that they lost more than $2 million in out-of-pocket costs and at least $5 million in profits as a result of Kroger's "corporate bullying mentality that led to its breach of the partnership agreement and theft of the festival." Kroger has filed a motion to dismiss the lawsuit, arguing in court papers that there was no enforceable contract.
Yahoo
5 days ago
- Business
- Yahoo
Kroger's CEO mysteriously resigned. An unrelated lawsuit involving Jewel could reveal why
A Cincinnati judge has ordered former Kroger CEO Rodney McMullen to explain—in writing—why he unexpectedly resigned in March, forcing him to confront what his attorneys call 'completely irrelevant' and 'embarrassing' questions in a lawsuit involving singer Jewel. McMullen, who led the Cincinnati-based grocery giant for more than a decade, resigned following what Kroger described as an investigation into his 'personal conduct.' As part of his departure, McMullen forfeited all of his unvested equity and bonuses—a total of $11 million, according to an SEC filing. That decision raised eyebrows for Eric Chaffee, a corporate law professor at Case Western Reserve University. 'Usually a CEO has downside protection if they leave,' he told Fortune. 'The fact that he was willing to give that up may provide some insight that what went on here was something he did not want revealed.' Kroger offered no further explanation at the time, sparking speculation in business circles. However, the mystery is now back in the spotlight due to an unrelated lawsuit filed against Kroger by singer-songwriter Jewel, and one of her business partners, over Kroger's annual Wellness Festival. The plaintiffs claim they played a key role in launching the festival and are seeking damages over alleged contractual disputes. Their attorneys argue that questioning McMullen about the reasons for his resignation could be relevant to his credibility as a trial witness, and could shed light on the 'allegedly corrupt corporate culture at Kroger.' McMullen's legal team has fought the request, but earlier this month, Hamilton County Common Pleas Court Judge Christian Jenkins ordered him to submit a written explanation by Aug. 8, including the names of those involved. Whether the public ever sees that document is still uncertain. If Jenkins decides the information is relevant, it could be kept under seal. If it's not deemed relevant, it won't be entered into the record at all. While prying into a CEO's exit is 'somewhat invasive,' Chaffee noted the court could find it justified, especially since Kroger itself tied the resignation to 'business ethics.' In litigation, he explained, 'If the other side offers a witness, you want to test that individual's credibility… to figure out whether they behave in an ethical manner.' That relevance test weighs heavily against another legal principle: the risk of unfairly embarrassing a witness. But Chaffee noted that in the U.S., there's a 'strong preference that the public has access to judicial proceedings—not just to be nosy, but because transparency makes for a fairer legal system.' That principle may prevail. However, for Kroger, keeping the reason private could protect its brand and stave off shareholder lawsuits or regulatory scrutiny. 'There's a cloud that's left by his departure,' Chaffee said, 'but companies sometimes decide that's better than the damage that could come from disclosure.' McMullen likely has his own reasons for staying quiet, Chaffee added. 'It might be something embarrassing to him personally, to a family member, or something that could have future repercussions for his career,' he said. 'If you're a CEO and there are news reports out there that you've done something you shouldn't have, getting another top job can become very, very difficult.' While Chaffee doesn't expect the case to set legal precedent—'this is probably more factually interesting than it is legally interesting'—he said the stakes are still high. The plaintiffs' strategy, he noted, is a common but effective pressure tactic: 'Seeking information that may potentially be damaging to Kroger… may incentivize them to settle this case.' This story was originally featured on Sign in to access your portfolio
