Menomonee Falls, Wis. — Kohl’s Corp. is facing significant turmoil following the dismissal of its CEO, Ashley Buchanan, due to serious ethical violations. The retail giant announced on Thursday that it terminated Buchanan after an investigation revealed unauthorized vendor dealings tied to undisclosed conflicts of interest.
The board of directors stated that the inquiry, supervised by outside legal counsel, uncovered that Buchanan directed the company to engage with a vendor linked to a personal relationship without proper disclosure. In addition, the investigation highlighted a multimillion-dollar consulting agreement involving that vendor, also failing to adhere to the company’s code of ethics.
As a consequence of his firing, Buchanan will forfeit all equity awards, including a $2.5 million signing incentive he received upon his recruitment. While the board did not reveal the identity of the associated individual, reports suggest that Chandra Holt, a former Walmart colleague and founder of a healthcare-focused coffee brand, was involved.
Kohl’s emphasized that Buchanan’s dismissal was unrelated to the company’s financial performance or operations and that no other employees were implicated in the misconduct.
Michael Bender, who became chairman of Kohl’s board last year, has been named interim CEO as the company embarks on the search for a permanent leader. Bender brings over 30 years of experience in retail and consumer goods, having served in prominent roles at companies like Walmart and Eyemart Express.
In a statement, John Schlifske, chair of Kohl’s nominating and ESG committee, expressed confidence in Bender’s leadership during this transitional period. He noted Bender’s extensive background in managing retail operations may serve the company well as it navigates these challenges.
Despite the upheaval at the executive level, Kohl’s has hinted at a dire financial outlook, projecting comparable sales declines of up to 4.3 percent for the first quarter of 2025. Operating income is expected to fall between $40 million and $45 million, with earnings per share anticipated to drop substantially.
Buchanan had previously been formulating a turnaround strategy, seeking to restore profitability amid ongoing struggles for the retailer, which had experienced leadership instability with previous CEOs also failing to reignite sales. His latest plan included renewing focus on proprietary brands and revitalizing various product categories.
This recent shakeup may further complicate Kohl’s ongoing efforts to stabilize its business. Analysts have noted that the turmoil could contribute to a perception of disarray within the retailer, which must quickly appoint a capable leader to spearhead an effective turnaround.
Kohl’s has already undertaken notable changes this year, shuttering a fulfillment center in San Bernardino, California, along with several retail locations. The company currently operates about 1,000 stores and must confront growing financial pressures, with significant debt obligations looming.
Observers are keen to see how Kohl’s addresses these multidimensional challenges moving forward. As Bender steps into the interim CEO role, the business community watches closely, questioning if he can navigate the company toward a more stable future amid the storm and uncertainty that has accompanied his predecessor’s exit.