Local unions urge Kroger board to replace CEO after $7.5 billion buyout plan By Reuters

(Reuters) – Local United Food and Commercial Workers unions called on the board of Kroger ( NISE: ) on Friday to replace CEO Rodney McMullen after the company announced a $7.5 billion share buyback plan following the termination of a deal to buy Albertsons ( They are NOT :).

Local UFCV unions that led the Stop the Merger coalition argued that the “sudden” and “massive” share buyback program comes at a time when Kroger needs investments in staffing, repairs and store remodeling.

Kroger and Albertsons ended their $25 billion merger plan on Wednesday after a US judge blocked the deal. Albertsons then filed suit against Kroger, alleging breach of contract that caused the contract to fall apart.

Kroger announced a new buyback program later Wednesday and said it intends to enter into an accelerated share buyback program of about $5 billion of common stock.

“It is outrageous that Rodney McMullen would try to distract from his multiple failures as CEO by announcing a one-time massive stock split to shareholders,” said Kim Cordova, president of UFCV Local 7 in Colorado and Wyoming.

Kroger did not respond to a Reuters request for comment.