Kohl’s Corporation has terminated its newly appointed CEO, Ashley Buchanan, after a mere five months in the role. The decision was made following an external investigation that uncovered Buchanan’s involvement in vendor transactions with undisclosed conflicts of interest, violating the company’s policies.
This move marks a significant setback for Kohl’s, which has been struggling to regain its footing in a challenging retail landscape.
Buchanan, who previously served as the CEO of Michaels, took the helm at Kohl’s on January 15, 2025, with the ambitious goal of revitalizing the struggling department store chain.
However, his tenure was cut short when an investigation by outside counsel revealed that he had directed the company to engage in transactions with vendors that involved undisclosed personal relationships.
These actions were deemed a breach of Kohl’s conflict-of-interest policies, leading to his termination “for cause,” a rare and serious rebuke in the corporate world.
The investigation, overseen by Kohl’s audit committee, found that Buchanan had entered into a multi-million dollar consulting agreement with a vendor where he had personal ties, under terms that were unusually favorable to the vendor.
This lack of transparency and failure to disclose these relationships as required by the company’s code of ethics led to his dismissal. Buchanan will forfeit all his equity awards and must repay a pro-rata portion of his $2.5 million signing bonus.
In response to Buchanan’s departure, Kohl’s has appointed Michael Bender, the current chairman of the board, as interim CEO. Bender, who has extensive experience in retail, having previously served as CEO of Eyemart Express and held senior roles at Walmart and PepsiCo, will lead the company until a permanent replacement is found.
Kohl’s has emphasized that Buchanan’s termination is unrelated to the company’s financial performance or operational results, and no other employees were involved in the misconduct.
This leadership change comes at a critical time for Kohl’s, which is facing significant challenges, including declining sales, increased competition from online retailers, and economic uncertainty. The company recently announced plans to close 27 stores and has been working to revamp its strategy to appeal to changing consumer behaviors.
Despite these challenges, Kohl’s stock initially rose following the news, reflecting investor optimism about the potential for new leadership to drive positive change. However, the long-term impact of this transition remains to be seen as the company navigates its ongoing turnaround efforts.