Kohl’s fires CEO Ashley Buchanan after investigation into conflicts of interest with a vendor

Kohl’s Corporation made headlines on Thursday with the announcement that CEO Ashley Buchanan had been fired for cause. The decision came after an external investigation revealed that Buchanan had violated the company’s conflict-of-interest policies by engaging in transactions with undisclosed conflicts of interest.

According to a regulatory filing dated April 30, it was discovered that Buchanan had conducted business with a vendor with whom he had a personal relationship, failing to disclose this connection as required by the company’s code of ethics. As a result of his dismissal, Buchanan will forfeit his equity awards and must repay Kohl’s a pro rata portion of his $2.5 million signing bonus. Additionally, he was found to have caused the company to enter into a multi-million dollar consulting agreement involving the same individual.

Despite Buchanan’s ouster, Kohl’s stock saw a 7.5% increase to $7.20 in late morning trading. The Menomonee Falls, Wisconsin-based retailer, which operates approximately 1,600 stores nationwide, emphasized that Buchanan’s termination was unrelated to the company’s performance, financial reporting, or results of operations.

Buchanan had only been in the CEO role since January 15, tasked with rejuvenating a business that was struggling with sluggish sales amidst economic uncertainties. Kohl’s, like other department stores, faced tough competition from retail giants like Walmart and Amazon, as well as challenges posed by tariffs imposed during the Trump administration.

In response to Buchanan’s departure, Kohl’s appointed Michael Bender, the board chair, as interim CEO. Bender expressed his dedication to the company during this critical period of transition. Prior to joining Kohl’s, Buchanan had served as the CEO of Michaels Companies and held various senior executive positions at Walmart and Sam’s Club.

The Associated Press contributed to this report.

Mary Cunningham, a reporter for CBS MoneyWatch, provided additional context to the story. Before her current role, she worked at “60 Minutes,” CBSNews.com, and CBS News 24/7 as part of the CBS News Associate Program.