Latest news with #RodneyMcMullen
Yahoo
4 days ago
- Business
- Yahoo
A lawsuit involving Kroger and singer Jewel could shed light on why the former supermarket CEO mysteriously resigned
In March, Kroger's CEO resigned from his corner-office role after nearly five decades at the company — an abrupt exit that left questions and $11 million on the table. Now, a lawsuit involving '90s folk sensation Jewel could bring some answers. Rodney McMullen, who joined Kroger in 1978, left after an internal investigation into 'his personal conduct,' the grocer said in a statement at the time. The Cincinnati-based company had kept the details tightly under wraps. A lawsuit from 2023 might push Kroger or McMullen himself to reveal those details. In legal filings, the plaintiffs — which include a company co-owned by singer-songwriter Jewel Kilcher — accused Kroger of breach of contract over a wellness festival partnership. McMullen isn't a defendant in the lawsuit, but he was identified as a trial witness. McMullen and his lawyer refused to answer questions about his resignation during deposition this year and requested a protective order to bar questioning on the 'embarrassing' topic, as described by his lawyer in court documents. But an Ohio judge had ordered McMullen to submit a written response by August 8 about his resignation, including the names of people involved. There will be 'incredible consequences… if this ever gets out,' McMullen's lawyer, Jeffrey Hinebaugh, said in front of the judge in May. Hinebaugh added that 'having to sit there and explain to people something that's completely unrelated and personal is the embarrassment.' The plaintiffs, meanwhile, said these questions are 'routine' and could reveal the corporate culture at Kroger. 'We respect the court's thoughtful ruling, and we're 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,' Brian O'Connor, a lawyer representing the plaintiffs, said in a statement to CNN. CNN has reached out to Hinebaugh for comment. Kroger declined to comment. However, the public will not get its eyes on McMullen's written response. If the court grants the protective order, the statement will be made part of the record kept under seal – meaning it's only available under judicial eyes. And if the court denies the request, then the written disclosure won't be entered into the record at all. But if the court decides to deny the request, more information on McMullen's resignation may come out because the plaintiff's lawyers would be able to question the ex-CEO on the topic. A trial is set for May 2026. Wellness festivals not going well Jewel had come up with an idea for a wellness festival alongside Trevor Drinkwater, CEO of Inclusion Companies. Drinkwater's company already had experience creating other retail-sponsored, celebrity-backed festivals like Bentonville Film Festival. Jewel and Drinkwater then decided to partner with Kroger on the 'Wellness Your Way' festivals for five years, according to the lawsuit. There was no formal agreement, but rather an agreement over email in June 2018 since Drinkwater's company would take the financial risk, the lawsuit said. Festivals under the partnership took place from 2018 to 2021, and Jewel performed a total of 12 times and and participated in 45 panels at these events, according to a legal complaint. But after the festivals became profitable, Kroger replaced Drinkwater and Jewel's company with one run by Kroger executive Colleen Lindholz's sister, legal filings allege. The plaintiffs argue this violated Kroger's business ethics policy. '(Lindholz) also informed (Drinkwater) that the festival had become Kroger's premiere annual corporate event, the CEO Rodney McMullen wanted to make it a part of his legacy, and Kroger needed to have ownership and control of it,' the lawsuit said. Kroger and the new company, Advantage, went on to host two more festivals in 2022 and 2023. The lawsuit alleges the plaintiffs lost $2 million of their own money and profits of at least $5 million. McMullen told Jewel over email, 'I'm not involved in planning of the Festival this year. That's Colleen's responsibility. Please communicate with her on this,' according to the lawsuit. McMullen's mysterious departure McMullen resigned in March after a company investigation found his personal conduct was 'inconsistent' with Kroger's ethics policies. The company said it did not involve Kroger's finances and no associates were involved. His resignation came a few months after Kroger rival Albertsons called off its $25 million merger with Kroger amid regulatory pressure. Albertsons subsequently sued Kroger for breach of contract agreement. Albertsons' lawyers, too, are curious about the circumstances leading to McMullen's departure. The company wants to compel Kroger to disclose McMullen's actions because it could have distracted him 'or conflicted with his obligations to Kroger' during the doomed merger process. 'McMullen's conduct and business ethics are central to this litigation,' Albertsons said in a motion filed late July. 'Yet Kroger refuses to produce any documents regarding significant lapses of 'business ethics' so serious they cost McMullen his job weeks after the Merger was blocked.' McMullen earned roughly $15.7 million in 2023, according to an SEC file. With his resignation, he forfeited more than $11 million in unvested stock and options, and any bonuses. CNN's Jordan Valinsky contributed to this report.
CNN
4 days ago
- Business
- CNN
A lawsuit involving Kroger and singer Jewel could shed light on why the former supermarket CEO mysteriously resigned
In March, Kroger's CEO resigned from his corner-office role after nearly five decades at the company — an abrupt exit that left questions and $11 million on the table. Now, a lawsuit involving '90s folk sensation Jewel could bring some answers. Rodney McMullen, who joined Kroger in 1978, left after an internal investigation into 'his personal conduct,' the grocer said in a statement at the time. The Cincinnati-based company had kept the details tightly under wraps. A lawsuit from 2023 might push Kroger or McMullen himself to reveal those details. In legal filings, the plaintiffs — which include a company co-owned by singer-songwriter Jewel Kilcher — accused Kroger of breach of contract over a wellness festival partnership. McMullen isn't a defendant in the lawsuit, but he was identified as a trial witness. McMullen and his lawyer refused to answer questions about his resignation during deposition this year and requested a protective order to bar questioning on the 'embarrassing' topic, as described by his lawyer in court documents. But an Ohio judge had ordered McMullen to submit a written response by August 8 about his resignation, including the names of people involved. There will be 'incredible consequences… if this ever gets out,' McMullen's lawyer, Jeffrey Hinebaugh, said in front of the judge in May. Hinebaugh added that 'having to sit there and explain to people something that's completely unrelated and personal is the embarrassment.' The plaintiffs, meanwhile, said these questions are 'routine' and could reveal the corporate culture at Kroger. 'We respect the court's thoughtful ruling, and we're 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,' Brian O'Connor, a lawyer representing the plaintiffs, said in a statement to CNN. CNN has reached out to Hinebaugh for comment. Kroger declined to comment. However, the public will not get its eyes on McMullen's written response. If the court grants the protective order, the statement will be made part of the record kept under seal – meaning it's only available under judicial eyes. And if the court denies the request, then the written disclosure won't be entered into the record at all. But if the court decides to deny the request, more information on McMullen's resignation may come out because the plaintiff's lawyers would be able to question the ex-CEO on the topic. A trial is set for May 2026. Jewel had come up with an idea for a wellness festival alongside Trevor Drinkwater, CEO of Inclusion Companies. Drinkwater's company already had experience creating other retail-sponsored, celebrity-backed festivals like Bentonville Film Festival. Jewel and Drinkwater then decided to partner with Kroger on the 'Wellness Your Way' festivals for five years, according to the lawsuit. There was no formal agreement, but rather an agreement over email in June 2018 since Drinkwater's company would take the financial risk, the lawsuit said. Festivals under the partnership took place from 2018 to 2021, and Jewel performed a total of 12 times and and participated in 45 panels at these events, according to a legal complaint. But after the festivals became profitable, Kroger replaced Drinkwater and Jewel's company with one run by Kroger executive Colleen Lindholz's sister, legal filings allege. The plaintiffs argue this violated Kroger's business ethics policy. '(Lindholz) also informed (Drinkwater) that the festival had become Kroger's premiere annual corporate event, the CEO Rodney McMullen wanted to make it a part of his legacy, and Kroger needed to have ownership and control of it,' the lawsuit said. Kroger and the new company, Advantage, went on to host two more festivals in 2022 and 2023. The lawsuit alleges the plaintiffs lost $2 million of their own money and profits of at least $5 million. McMullen told Jewel over email, 'I'm not involved in planning of the Festival this year. That's Colleen's responsibility. Please communicate with her on this,' according to the lawsuit. McMullen resigned in March after a company investigation found his personal conduct was 'inconsistent' with Kroger's ethics policies. The company said it did not involve Kroger's finances and no associates were involved. His resignation came a few months after Kroger rival Albertsons called off its $25 million merger with Kroger amid regulatory pressure. Albertsons subsequently sued Kroger for breach of contract agreement. Albertsons' lawyers, too, are curious about the circumstances leading to McMullen's departure. The company wants to compel Kroger to disclose McMullen's actions because it could have distracted him 'or conflicted with his obligations to Kroger' during the doomed merger process. 'McMullen's conduct and business ethics are central to this litigation,' Albertsons said in a motion filed late July. 'Yet Kroger refuses to produce any documents regarding significant lapses of 'business ethics' so serious they cost McMullen his job weeks after the Merger was blocked.' McMullen earned roughly $15.7 million in 2023, according to an SEC file. With his resignation, he forfeited more than $11 million in unvested stock and options, and any bonuses. CNN's Jordan Valinsky contributed to this report.
CNN
4 days ago
- Business
- CNN
A lawsuit involving Kroger and singer Jewel could shed light on why the former supermarket CEO mysteriously resigned
In March, Kroger's CEO resigned from his corner-office role after nearly five decades at the company — an abrupt exit that left questions and $11 million on the table. Now, a lawsuit involving '90s folk sensation Jewel could bring some answers. Rodney McMullen, who joined Kroger in 1978, left after an internal investigation into 'his personal conduct,' the grocer said in a statement at the time. The Cincinnati-based company had kept the details tightly under wraps. A lawsuit from 2023 might push Kroger or McMullen himself to reveal those details. In legal filings, the plaintiffs — which include a company co-owned by singer-songwriter Jewel Kilcher — accused Kroger of breach of contract over a wellness festival partnership. McMullen isn't a defendant in the lawsuit, but he was identified as a trial witness. McMullen and his lawyer refused to answer questions about his resignation during deposition this year and requested a protective order to bar questioning on the 'embarrassing' topic, as described by his lawyer in court documents. But an Ohio judge had ordered McMullen to submit a written response by August 8 about his resignation, including the names of people involved. There will be 'incredible consequences… if this ever gets out,' McMullen's lawyer, Jeffrey Hinebaugh, said in front of the judge in May. Hinebaugh added that 'having to sit there and explain to people something that's completely unrelated and personal is the embarrassment.' The plaintiffs, meanwhile, said these questions are 'routine' and could reveal the corporate culture at Kroger. 'We respect the court's thoughtful ruling, and we're 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,' Brian O'Connor, a lawyer representing the plaintiffs, said in a statement to CNN. CNN has reached out to Hinebaugh for comment. Kroger declined to comment. However, the public will not get its eyes on McMullen's written response. If the court grants the protective order, the statement will be made part of the record kept under seal – meaning it's only available under judicial eyes. And if the court denies the request, then the written disclosure won't be entered into the record at all. But if the court decides to deny the request, more information on McMullen's resignation may come out because the plaintiff's lawyers would be able to question the ex-CEO on the topic. A trial is set for May 2026. Jewel had come up with an idea for a wellness festival alongside Trevor Drinkwater, CEO of Inclusion Companies. Drinkwater's company already had experience creating other retail-sponsored, celebrity-backed festivals like Bentonville Film Festival. Jewel and Drinkwater then decided to partner with Kroger on the 'Wellness Your Way' festivals for five years, according to the lawsuit. There was no formal agreement, but rather an agreement over email in June 2018 since Drinkwater's company would take the financial risk, the lawsuit said. Festivals under the partnership took place from 2018 to 2021, and Jewel performed a total of 12 times and and participated in 45 panels at these events, according to a legal complaint. But after the festivals became profitable, Kroger replaced Drinkwater and Jewel's company with one run by Kroger executive Colleen Lindholz's sister, legal filings allege. The plaintiffs argue this violated Kroger's business ethics policy. '(Lindholz) also informed (Drinkwater) that the festival had become Kroger's premiere annual corporate event, the CEO Rodney McMullen wanted to make it a part of his legacy, and Kroger needed to have ownership and control of it,' the lawsuit said. Kroger and the new company, Advantage, went on to host two more festivals in 2022 and 2023. The lawsuit alleges the plaintiffs lost $2 million of their own money and profits of at least $5 million. McMullen told Jewel over email, 'I'm not involved in planning of the Festival this year. That's Colleen's responsibility. Please communicate with her on this,' according to the lawsuit. McMullen resigned in March after a company investigation found his personal conduct was 'inconsistent' with Kroger's ethics policies. The company said it did not involve Kroger's finances and no associates were involved. His resignation came a few months after Kroger rival Albertsons called off its $25 million merger with Kroger amid regulatory pressure. Albertsons subsequently sued Kroger for breach of contract agreement. Albertsons' lawyers, too, are curious about the circumstances leading to McMullen's departure. The company wants to compel Kroger to disclose McMullen's actions because it could have distracted him 'or conflicted with his obligations to Kroger' during the doomed merger process. 'McMullen's conduct and business ethics are central to this litigation,' Albertsons said in a motion filed late July. 'Yet Kroger refuses to produce any documents regarding significant lapses of 'business ethics' so serious they cost McMullen his job weeks after the Merger was blocked.' McMullen earned roughly $15.7 million in 2023, according to an SEC file. With his resignation, he forfeited more than $11 million in unvested stock and options, and any bonuses. CNN's Jordan Valinsky contributed to this report.
Fox News
5 days ago
- Business
- Fox News
Former Kroger CEO must explain reason for resignation to court in pop star Jewel's ongoing lawsuit
Kroger's former CEO has been ordered by a judge in Ohio to explain his abrupt resignation from the grocery store chain earlier this year in an unrelated lawsuit that involves pop star Jewel. The "You Were Meant for Me" singer and a business partner sued Kroger over its involvement in launching the company's Wellness Festival and are seeking damages over contractual disputes, according to Fortune. In their lawsuit, they say the reason for Rodney McMullen's resignation in March could be pertinent to their case "regarding his credibility and relevant to the existence of an allegedly corrupt corporate culture at Kroger," court documents dated Aug. 1 and obtained by Fox News Digital said. McMullen's lawyers had argued that requiring him to disclose why he resigned would be "irrelevant" to the case and personally "embarrassing" and sought a protective order, but Judge Christian A. Jenkins ordered him to submit his reasons for resigning in writing, which will be privately reviewed by the judge. In Kroger's press release this year announcing McMullen's resignation, the company said that while his behavior was "'unrelated to the business,' his personal conduct was 'inconsistent with Kroger's Policy on Business Ethics,'" according to court documents. "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," the judge said, adding that "without knowing the basis for the alleged embarrassment, it is impossible to weight it against the relevancy and proportionality." He added that, despite the "court's reticence," he would order McMullen to answer privately under oath "the facts and circumstances relating to your resignation from the Kroger Co." After a review, the court could grant McMullen's request for a protective order and make his answer for "judicial eyes only." The Aug. 1 order gave McMullen seven days to comply. Fox News Digital has reached out to Jewel and Kroger for comment.
Daily Mail
5 days ago
- Business
- Daily Mail
Former CEO of Kroger will have 'embarrassing' secrets exposed in bombshell lawsuit from '90s popstar
The former CEO of Kroger has been ordered to provide an account as to why he was forced to resign from the grocery giant earlier this year as part of a lawsuit filed by songstress Jewel. Rodney McMullen, 65, was the head of the firm since 2014 before standing down amid a probe into his personal conduct. At the time of his abrupt exit, the company said his behavior was 'inconsistent' with its own policy of business ethnics. McMullen's departure has become a focal point in a lawsuit not related to his exit, Jewel sued Kroger over contractual issues relating to their Wellness Festival. The songstress claims she was cut from the festival despite being central to it forming, and that she and her business partner are owed damages. Lawyers for the 'You Were Meant For Me' singer argued that McMullen's resignation could be relevant in exposing what they described as a 'corrupt corporate culture'. His lawyers pushed back against this, saying his exit was both 'completely irrelevant' and 'embarrassing', the judge ordered him to answer in writing anyway. According to The Cincinnati Enquirer, Common Pleas Court Judge Christian Jenkins ordered McMullan to explain the circumstances surrounding his resignation. Jenkins wrote: 'McMullen's generalized allegation of embarrassment does not satisfy his burden. 'It is plausible that this evidence could reflect on Mr. McMullen's credibility or Kroger's corporate culture.' The ruling doesn't mean that his testimony will be made public, McMullen has sought to seal his testimony which is currently under consideration, the outlet said. The lawsuit from Jewel was filed in 2023 and claims she lost over $2 million in out-of-pocket costs and at least $5 million in profits. It adds that this loss was a direct 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 have the lawsuit thrown out, saying that there was no enforceable contract in place. At the time of McMullen's exit, he alerted the board to his 'certain personal conduct' on February 21 and independent lawyers were drafted in to probe his behavior. Kroger insisted the scandal 'is not related to the company's financial performance, operations or reporting.' His resignation caused him to forfeit $11.2 million worth of unvested stock and options and any eligibility for a bonus for the fiscal year that ended on February 1, reported the Cincinnati Enquirer. 'In connection with his resignation, Mr. McMullen will forfeit all unvested equity awards outstanding under the Company's 2019 Long-Term Incentive Plan and will not be eligible to receive payment of a 2024 bonus,' Kroger said in Securities and Exchange Commission filings. 'Mr. McMullen will retain any equity awards that, as of the resignation date, are fully vested pursuant to their terms or for which the performance period is complete.' The terms of his departure appear harsher than for a typical 'voluntary termination or retirement,' according to the newspaper. SEC filings revealed McMullen's total compensation from Kroger in 2023 was $15.7 million. He was allowed to keep $14.7 million worth of stock and options that were vested as of his March 3 resignation. However, he may have lost millions in bonus pay, as McMullen took home more than $4 million from the incentive plan in 2021 and 2022. If he had delayed his resignation, McMullen may have been able to keep an additional $6.3 million worth of stock and options that were set to vest by March 11. McMullen began his career with Kroger in 1978 as a part-time stock clerk and bagger at a store in Lexington, Kentucky. He worked his way up through the company, becoming chief financial officer in 1995 and chief operating officer in 2009. McMullen was named Kroger's CEO in 2014 and chairman in 2015. He held both positions until his dismissal.
