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Kohl’s Terminates CEO Ashley Buchanan Amid Ethics Violations
Kohl’s Corporation has abruptly dismissed its CEO, Ashley Buchanan, following an internal investigation that uncovered serious conflicts of interest involving vendor transactions. The probe, led by the board’s audit committee and external legal counsel, revealed that Buchanan directed the company to engage in business with a vendor tied to a personal associate under unusually favorable terms. Additionally, he secured a lucrative consulting agreement for the same individual without disclosing the relationship, violating Kohl’s strict code of ethics.
Details of the Investigation
The investigation found that Buchanan, who took the helm at Kohl’s in January 2025, had undisclosed ties to a vendor that received preferential treatment. Key findings include:
- Undisclosed Relationship: Buchanan failed to disclose his personal connection to the vendor’s founder.
- Favorable Terms: The vendor was awarded contracts with unusually advantageous conditions.
- Consulting Agreement: Buchanan arranged a multimillion-dollar consulting deal for the same individual without board approval.
Leadership Shake-Up at Kohl’s
Buchanan’s tenure lasted less than four months, marking the third CEO transition for Kohl’s in as many years. Michael Bender, the company’s board chair, has been appointed interim CEO while Kohl’s searches for a permanent replacement. Buchanan, formerly the CEO of The Michaels Companies and a Walmart U.S. e-Commerce executive, leaves behind a company grappling with leadership instability.
Financial Performance Amid Turmoil
Despite the upheaval, Kohl’s preliminary first-quarter results surpassed Wall Street expectations. The company projects:
- A comparable sales decline of 4.3% to 4%.
- A loss per share between 20 to 24 cents, better than analysts’ forecasts.
Final results are set to be released on May 29.
Comparing Kohl’s Recent CEO Tenures
| CEO | Tenure | Reason for Departure |
|---|---|---|
| Ashley Buchanan | Jan 2025 – May 2025 | Conflict of interest |
| Michelle Gass | 2018 – 2022 | Resigned for Levi Strauss role |
| Kevin Mansell | 2008 – 2018 | Retirement |
The Broader Implications
Buchanan’s dismissal underscores the critical importance of ethical conduct in corporate leadership. Transparency and adherence to governance policies are non-negotiable, especially for publicly traded companies like Kohl’s. The incident also highlights the challenges Kohl’s faces in stabilizing its executive team amid ongoing market pressures.
What’s Next for Kohl’s?
With interim CEO Michael Bender at the helm, Kohl’s will focus on:
- Identifying a permanent CEO with a proven track record in retail leadership.
- Rebuilding investor confidence through transparent governance.
- Navigating a competitive retail landscape while improving financial performance.
The fallout from Buchanan’s abrupt exit serves as a cautionary tale for corporate leaders and a pivotal moment for Kohl’s as it seeks to regain its footing.
