Menomonee Falls, Wis. — Kohl’s has dismissed its newly appointed chief executive, Ashley Buchanan, following an investigation that uncovered significant conflicts of interest tied to his business dealings with a woman he previously dated. This shake-up adds to the retailer’s ongoing leadership challenges, as it attempts to address a broader struggle with declining sales.
Buchanan, who took on the CEO role just four months ago, allegedly directed Kohl’s to engage in vendor contracts that involved undisclosed ties with Chandra Holt, a former colleague from Walmart. The reported conflicts of interest arose from a multimillion-dollar consulting agreement between Holt’s company and Kohl’s, characterized by unusually favorable terms for the vendor.
Holt, the founder and CEO of Incredibrew, a health-focused coffee brand, stated that she has not received any payments from Kohl’s related to her business. The investigation conducted by the company’s audit committee concluded that Buchanan did not disclose the vendor relationships, leading to his termination for cause.
In the wake of Buchanan’s dismissal, Kohl’s appointed board member Michael Bender as interim CEO. Bender, who has been on the board since July 2019 and became chair in May 2024, sought to reassure employees during an all-hands meeting without taking questions or providing further details about the decision.
“This is not a moment we expected nor the outcome we wanted for the company and our associates, but it is the right decision for us,” Bender stated, as shared in a recording of the meeting.
Kohl’s shares saw a 7.6% increase to $7.21 following the announcement. The company emphasized that Buchanan’s removal was unrelated to its financial performance, although preliminary first-quarter results indicated a projected decline in comparable sales of between 4% and 4.3%.
The retailer has faced instability in its leadership over recent years, now experiencing its third CEO change since 2020. Buchanan’s predecessor, Tom Kingsbury, also had a brief tenure, leaving before him was Michelle Gass, who departed for a position with Levi’s.
As part of his termination agreement, Buchanan will forfeit all equity awards and is required to reimburse Kohl’s a prorated amount of his signing bonus, valued at $2.5 million. This incident marks yet another challenge for Kohl’s as it navigates a tumultuous retail landscape while trying to stabilize its executive structure.