Kohl’s Just Fired its Brand New CEO for Unethical Behavior
Retail giant Kohl’s has abruptly terminated CEO Ashley Buchanan less than five months into his tenure, citing unethical conduct linked to undisclosed conflicts of interest in vendor dealings.
The board’s decision, described as a termination “for cause,” follows an investigation by external legal counsel that revealed Buchanan directed the company to engage in transactions with vendors without disclosing relevant conflicts. Kohl’s emphasized in a statement that the issue did not involve any other employees and had no impact on the company’s financial reporting or operations.
Buchanan, who previously served as CEO of Michaels, had only taken over at Kohl’s on January 15, with hopes pinned on his leadership to revive the struggling department store chain. However, the company’s performance declined under his short leadership, with preliminary earnings showing a 4.3% drop in sales.
Michael Bender, chairman of the Kohl’s board, has been named interim CEO while the search for a permanent replacement begins. News of the leadership shake-up sent Kohl’s shares up by as much as 8%, reflecting investor optimism over a potential new direction.
Retail analysts say the incident adds to a series of challenges for Kohl’s, including shifting consumer habits, increasing pressure from e-commerce, and economic headwinds. The company recently announced the closure of 27 stores, reducing its footprint to around 1,100 locations nationwide.
Neil Saunders, managing director of GlobalData Retail, criticized the disruption, noting it creates an image of instability. “This kind of dismissal is rare and damaging. It suggests a failure in executive vetting and adds to the perception that Kohl’s is adrift,” he said.
The leadership crisis arrives at a time when the company is already battling to regain relevance in a rapidly evolving retail landscape.
