Kohl’s CEO was fired for engaging in unethical behaviour just after 5 months of appointment. CEO Ashley Buchanan was fired “for cause,” a rare and serious move in the business world. An outside investigation found he broke company rules by directing deals with vendors where he had hidden conflicts of interest, according to a press release. Kohl’s said his firing wasn’t related to the company’s performance, finances, or any other employees.
Kohl’s brought on Mr. Buchanan as CEO in November, when he was serving in the same role at Michaels, the crafts store, where he had worked since 2020. His policy violation came to light after Kohl’s had an outside firm look into the matter.
Why Was Kohl’s CEO Fired?
The investigation, led by an external firm and overseen by Kohl’s audit committee, found that Buchanan facilitated a multimillion-dollar consulting deal with unusually favorable terms for a vendor linked to his former romantic partner, Chandra Holt. Holt, the founder and CEO of Incredibrew, a vendor company, denied receiving compensation from Kohl’s.
However, the audit committee determined that Buchanan failed to disclose the relationship, violating the company’s code of ethics. As a result, he was terminated “for cause,” forfeiting all equity awards and part of his $2.5 million signing bonus.
Kohl’s Appoints Michael Bender as Interim CEO
In the wake of Buchanan’s dismissal, Kohl’s has appointed Michael Bender, the company’s board chair since 2024, as interim CEO. Bender, who has served on Kohl’s Board since 2019, brings over 30 years of retail and consumer goods leadership experience. The board expressed confidence in his ability to lead the company through this challenging period, emphasizing a continued focus on operational efficiency and long-term financial stability.
Kohl’s Performance: A Retailer in Recovery
Despite leadership upheaval, Kohl’s financial performance has shown signs of improvement. In its latest earnings report, the retailer beat Wall Street expectations, with stronger-than-anticipated sales and a solid outlook heading into the second half of the year. The company has been pushing store remodels, expanding activewear selections, and investing in online shopping enhancements to attract younger shoppers.
Who Is Chandra Holt?
Chandra Holt is the founder and CEO of Incredibrew, a vendor company that was involved in the controversial consulting deal facilitated by Buchanan. Before founding Incredibrew, Holt held executive roles at Bed Bath & Beyond and Walmart, where she worked alongside Buchanan. Following the revelation of the undisclosed relationship, Holt lost her consulting contract with Boston Consulting Group due to the non-disclosure.
This leadership shake-up marks another disruption in Kohl’s executive ranks, following the departure of former CEO Tom Kingsbury earlier this year. As the company navigates these turbulent waters, all eyes will be on interim CEO Michael Bender to steer Kohl’s toward a more stable and ethical future.
