Kohl’s Corporation’s stock price jumped nearly 6% after the company announced the firing of its CEO, Ashley Buchanan. He was let go due to undisclosed conflicts of interest in vendor transactions, just five months into his role.
The board fired him for serious reasons after an investigation found that he directed the company to work with vendors linked to personal relationships, breaking Kohl’s conflict-of-interest rules.
This change in leadership is important because Kohl’s stock has dropped about 50% to 52% over the year. The board stated that Buchanan’s firing was not due to the company’s financial performance, which has struggled with declining sales and competition from online retailers.
Michael Bender, the current chairman of the board, will serve as the interim CEO while the company looks for a permanent replacement. He will stay on the board but will step down as chair.
This change marks the fourth CEO shift for Kohl’s in just three years, highlighting ongoing issues with stable leadership and revitalizing the company’s strategy.
While the stock gained in the short term, Kohl’s faces major long-term challenges. The company expects a decline in sales for the first quarter and continues to face competition from e-commerce platforms.
How well Kohl’s handles these challenges will depend on its ability to implement effective strategies under new leadership and regain investor confidence.