Kohl's department store chain has made headlines after abruptly firing its newly appointed CEO, Ashley Buchanan, just 100 days into his tenure. This decision, announced on May 1, 2025, follows revelations of unethical business dealings involving a personal relationship Buchanan had with a vendor.
Buchanan, who took the helm of Kohl's on January 15, 2025, was found to have directed the company to engage in vendor transactions that involved undisclosed conflicts of interest, according to a press release from the retailer. The vendor in question is Chandra Holt, a former colleague at Walmart and Buchanan's romantic partner. Holt, who is the founder and CEO of Incredibrew, a coffee brand, reportedly signed a multimillion-dollar consulting agreement with Kohl's under terms that were deemed highly favorable to her.
This investigation was overseen by Kohl's audit committee and led to the conclusion that Buchanan violated the company's code of ethics. His dismissal was classified as "for cause," a significant rebuke in the corporate world. The company stated that Buchanan's termination was unrelated to its financial performance, which has seen comparable sales decline by between 4% and 4.3% in the first quarter.
In light of these events, Kohl's board has appointed Michael Bender, the current chairman, as interim CEO effective immediately. Bender has been a director since July 2019 and was appointed board chair in May 2024. Following the news of Buchanan's firing, Kohl's shares experienced a nearly 6% increase, reaching $7.09.
Before his brief stint at Kohl's, Buchanan was the CEO of Michaels, where he gained a reputation as a savvy deal-maker. Under his leadership, Michaels was sold to Apollo Global Management for $5 billion, a move that significantly changed the trajectory of the business. His compensation package at Kohl's was reported to be over $20 million, which was substantially higher than that of his predecessor, Tom Kingsbury, who earned $8.9 million in 2023.
However, the fallout from his termination includes severe financial penalties. Buchanan will forfeit all equity awards and is required to reimburse Kohl's a pro-rated amount of $2.5 million for his signing bonus, as stated in securities filings. This situation marks another chapter in a turbulent period for Kohl's, which has seen a revolving door of leadership over the past few years, with three CEOs in just four years.
Kohl's has faced significant challenges in recent years, including declining sales, competition from online retailers, and changing consumer behaviors. The company recently announced the closure of 27 locations, leaving it with approximately 1,100 stores.
The retail landscape has been challenging, with many department stores grappling with shifts in shopping habits, heightened inflation, and a general pullback in consumer spending amid economic uncertainty. Analysts note that Buchanan's departure, while not directly tied to the company's financial woes, adds to the perception of instability within the organization.
Neil Saunders, managing director of GlobalData Retail, commented on the situation, stating, "While the sacking is not related to performance, it gives the impression that Kohl’s is in a perpetual state of chaos and raises questions about the due diligence over his appointment. It’s a blow upon a bruise for the company."
As Kohl's navigates this tumultuous period, the focus will be on how the company can stabilize its leadership and improve its financial performance moving forward. With the appointment of Michael Bender as interim CEO, stakeholders are hopeful for a strategic direction that can restore confidence in the brand.
In summary, Ashley Buchanan's tenure at Kohl's has come to an abrupt end due to ethical breaches linked to his relationship with Chandra Holt. The company now faces the dual challenge of addressing leadership instability while attempting to revitalize its sales and restore its market position.
