Phoenix – from www.nydailynews.com – The CEO of Sunflower Farmers Market, a popular grocery store, resigned after he was arrested in connection with a child prostitution investigation on Thursday.

Michael Gilliland allegedly arranged a meeting with an underage girl he met online, police said.

Gilliland was charged with felony child prostitution.

The food executive resigned from his position on Saturday, but according to the company, he said he believed he was not guilty.

“Sunflower appreciates the respect that Mr. Gilliland has shown for the company by his action so that his personal affairs will not affect the company,” Sunflower’s president and COO Chris Sherrell said.

Sherrell is taking over as acting CEO.

Gilliand’s leadership at Sunflower Farmers Market came after he founded Wild Oats Markets Inc. He’s been with Sunflower since its founding in 2002 and has helped it grow into one of the more formidable organic food companies in the country. In 2010 he was named ColoradoBiz magazine’s CEO of the Year and was considered one of the more innovative minds in the organic food business.

The article in the magazine portrayed him as a hard-working family man who brought a successful business savvy to the company. Sherell told the magazine that behind Gilliand’s steering, he expected sales to increase 20-25% in 2011.

In addition to his business ventures, Gilliand also runs a 40-acre commercial organic farm in Colorado, according to the magazine.

Seven other men were arrested in the child sex sting, police said.

From AP – PHOENIX — A Maricopa County magistrate has set a $12,000 bond for a natural foods executive arrested on suspicion of soliciting sex with a minor.

Sunflower Farmers Market Chief Executive Officer Michael Gilliland was arrested Thursday and faces a charge of felony child prostitution. Court paperwork shows Gilliland was ordered not to have contact with minors.

Gilliland also founded Wild Oats Markets Inc., which was acquired by Whole Foods Market [WFMI] in 2007.

Phoenix police say Gilliland was one of eight men arrested in a sting.

Sunflower said Gilliland told the company he believes he is not guilty. Sunflower’s president and COO, Chris Sherrell, was named acting chief executive by the company’s board of directors.

. The chain has 32 stores in California, Colorado, Arizona, New Mexico, Nevada, Utah and Texas.