Dec 13 (Reuters) - United Food and Commercial Workers
local unions on Friday urged Kroger's ( KR ) board to replace
CEO Rodney McMullen following the company's announcement of a
$7.5 billion stock buyback plan after terminating a deal to buy
Albertsons ( ACI ).
The UFCW local unions that led the "Stop the Merger
coalition" argued that the "abrupt" and "massive" share
repurchase program comes at a time when Kroger ( KR ) needs investments
in staffing, repairs and store remodels.
Kroger ( KR ) and Albertsons ( ACI ) terminated their $25-billion merger
plan on Wednesday after a U.S. judge blocked the deal.
Albertsons ( ACI ) then filed a lawsuit against Kroger ( KR ), alleging a
breach of contract that led to the deal's demise.
Kroger ( KR ) announced a new repurchase program later on Wednesday
and said it intends to enter an accelerated share buyback
program of about $5 billion of common stock.
"It is outrageous that Rodney McMullen would try to distract
attention from his multiple failures as CEO by announcing a
massive one-time giveaway to shareholders," said Kim Cordova,
president of UFCW Local 7 in Colorado and Wyoming.
Kroger ( KR ) did not respond to a Reuters request for comment.