Kohl’s Corp. has made headlines after the abrupt firing of its CEO, Ashley Buchanan, just four months into his tenure. The decision was made following an internal investigation that revealed he had directed millions of dollars in business to a romantic partner, a violation of company policies. This development raises questions about corporate governance and the challenges facing one of America’s largest department store chains.
Buchanan, who took over the role on January 15, 2025, was dismissed on April 30, 2025. The board of directors found that he engaged in a series of "highly unusual" vendor transactions that involved undisclosed conflicts of interest. At the center of the controversy is Chandra Holt, the founder of Incredibrew, a coffee brand infused with vitamins and minerals, with whom Buchanan had a personal relationship. Reports indicate that the terms of these business deals were favorable to Holt’s company.
According to a statement released by Kohl’s, the board’s decision to terminate Buchanan was not related to the company’s financial performance, which has been struggling. In fact, the company has reported a significant decline in sales and profits, with a 9.4% drop in sales and a staggering 74.2% decrease in profits during the last quarter of 2024. This downturn has led to the announcement of the closure of more than two dozen underperforming stores across the U.S.
The board chair, Michael Bender, has stepped in as the interim CEO while the company searches for a permanent replacement. Bender, who has extensive experience in retail, having held executive positions at Walmart and other companies, expressed confidence in leading the company through this challenging period. “The Board has full confidence in Michael to serve our customers and associates as Interim CEO,” the company stated.
The firing of Buchanan has had an immediate impact on Kohl’s stock price, which saw a 5.6% increase shortly after the announcement. This uptick comes as a relief to investors who have witnessed the company’s shares plummet by 60% since December 2024. The stock price had opened at $6.71 on the day of the announcement, reflecting the company’s ongoing struggles in the retail market.
In addition to his dismissal, Buchanan is required to forfeit all equity awards from his tenure and repay a prorated portion of his $2.5 million signing bonus. His compensation package was reported to exceed $20 million, making him one of the highest-paid executives in Wisconsin, a stark contrast to the company’s declining fortunes.
The investigation into Buchanan’s conduct highlighted serious lapses in corporate governance at Kohl’s. The board’s decision to fire him for cause indicates the seriousness of the violations he committed, which included entering Kohl’s into multimillion-dollar consulting agreements without disclosing his relationship with Holt. This breach of ethics has raised concerns about the effectiveness of the company’s oversight mechanisms.
Chandra Holt, who has a notable background in retail, met Buchanan while they both worked at Walmart. After leaving Walmart, Holt founded Incredibrew and took on various leadership roles, including a brief stint as CEO of Bed Bath & Beyond. Incredibrew, which focuses on health-enhancing coffee products, has been positioned as a growing brand in the competitive beverage market.
Despite the turmoil at the executive level, Kohl’s has stated that the leadership change will not impact its business operations. However, the company is facing significant challenges, including a projected sales decline of 5% to 7% for the upcoming year. Earlier in 2025, Kohl’s had already revised its profit forecast downward, signaling a tough road ahead.
Customers have expressed mixed feelings about the direction Kohl’s has taken under Buchanan’s leadership. Some have voiced dissatisfaction with the changes to the product lineup, including the introduction of new brands that they feel do not align with Kohl’s traditional offerings. “Why do I want to see Nike and Eddie Bauer in Kohl’s when they are for sale all over the mall?” lamented a long-time shopper. This sentiment reflects a broader concern among customers about the company’s strategy to attract new clientele while alienating its loyal base.
As Kohl’s navigates these turbulent waters, it remains to be seen how the new interim leadership will address the underlying issues that have plagued the retailer. The board’s commitment to finding a qualified permanent CEO will be critical in restoring confidence among investors and customers alike.
The upcoming annual shareholder meeting on May 14, 2025, will be a pivotal moment for Kohl’s as it seeks to reassure stakeholders about its future direction. With nine directors up for re-election, the board will need to demonstrate a strong and unified vision moving forward.
As the retail landscape continues to evolve, Kohl’s faces not only the repercussions of this leadership change but also the broader economic challenges posed by trade wars and changing consumer preferences. The company’s ability to adapt and innovate will be essential in reclaiming its position in the competitive retail market.
