"Kroger’s Turbulent Transition: Former CEO’s Departure Sparks Legal Battle Tied to Jewel’s Wellness Festival"

New York — Rodney McMullen’s departure from Kroger as CEO in March has sparked intrigue following a nearly five-decade tenure at the grocery giant. His resignation, which the company attributed to an internal inquiry into his personal conduct, raises questions that are now being pursued in a legal battle involving singer-songwriter Jewel Kilcher.

McMullen, who had been with Kroger since 1978, left the position after an investigation but remained tight-lipped about the details surrounding his exit. The lawsuit filed in 2023, which includes claims from a company that co-owns a business with Jewel, may shed light on the circumstances of his departure and the company’s internal dynamics.

The plaintiffs in the suit allege that Kroger breached a contract concerning a wellness festival partnership, where Jewel was set to perform. Although McMullen is not named as a defendant, he has been called as a witness in the case. During a recent deposition, he and his legal counsel dodged inquiries about his resignation, describing the topic as “embarrassing.” An Ohio judge has since mandated that McMullen respond in writing to questions regarding his resignation, including the names of individuals involved, by August 8.

In court, McMullen’s attorney, Jeffrey Hinebaugh, expressed concern that revealing such personal details could have “incredible consequences.” He further stated that answering questions unrelated to the lawsuit posed significant embarrassment for McMullen. In contrast, the plaintiffs argue that these inquiries are standard and could illustrate the corporate culture within Kroger.

The Attorney for the plaintiffs, Brian O’Connor, expressed satisfaction with the court’s ruling that prevents McMullen from avoiding testimony based on his lawyer’s claims of embarrassment. Meanwhile, the public may not see McMullen’s written response, as the court could grant a protective order that keeps the details sealed from public scrutiny.

If the court ultimately denies the protective order, more details surrounding McMullen’s resignation could emerge, as the plaintiff’s legal team would then be allowed to question him directly. A trial is scheduled for May 2026.

Jewel, along with Trevor Drinkwater, CEO of Inclusion Companies, originally conceptualized a wellness festival that aimed to engaged communities positively. The duo partnered with Kroger, embarking on a five-year plan for the “Wellness Your Way” festivals based on an informal agreement reached in 2018. During these events, which took place from 2018 to 2021, Jewel performed multiple times and engaged in numerous panels.

However, the allegations state that after the festivals became profitable, Kroger supplanted Jewel’s involvement with a sister-run company linked to Kroger executive Colleen Lindholz. The legal filings contend that this decision was against Kroger’s business ethics policy. In a recent email to Jewel, McMullen stated that he was no longer involved in planning the festival, redirecting her to Lindholz instead.

Kroger and Advantage, the company that took over festival operations, hosted festivals through 2023. The plaintiffs claim they suffered financial losses totaling $2 million, in addition to projected profits amounting to at least $5 million, due to Kroger’s actions.

McMullen stepped down from the CEO position amid concerns regarding his conduct, stating that it was incongruent with Kroger’s ethical standards. His resignation followed the collapse of a $25 million merger with rival Albertsons, which led to a breach of contract lawsuit against Kroger.

As this complex situation unfolds, McMullen’s conduct and the associated ethical considerations remain central to ongoing litigation and may impact the broader corporate environment at Kroger. Meanwhile, McMullen forfeited over $11 million in unvested stock and options with his resignation.

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