MENOMONEE FALLS, Wis. — Kohl’s Corp. has abruptly terminated CEO Ashley Buchanan “for cause” following an internal investigation that found he violated company policy by directing the retailer to engage in vendor transactions involving undisclosed conflicts of interest.
The department store chain announced Thursday that Chairman Michael Bender has been appointed interim CEO, effective immediately, as the company begins the search for a permanent replacement.
According to Kohl’s statement, Buchanan failed to disclose ties to an individual behind a vendor that received multimillion-dollar contracts with highly favorable terms. The company added that his termination is unrelated to Kohl’s financial performance, results of operations, or other employees.
Buchanan, who joined Kohl’s in January after previously serving as CEO of Michaels, lasted less than five months in the role. Despite expectations that he would help reverse declining sales, the company reported a 9.4% drop in sales and a 74.2% decrease in profit during the crucial fourth quarter of 2024.
In a securities filing, Kohl’s disclosed that Buchanan will forfeit all equity awards, including a $2.5 million signing bonus, and has been removed from consideration for re-election to the board at the May 14 shareholders’ meeting.
Bender, who has served on the board since 2019 and became chairman in May 2024, is a former Walmart executive and past CEO of Eyemart Express. His appointment marks the retailer’s third leadership change in as many years amid ongoing struggles with changing consumer behavior, inflation, and online competition.
The company also recently announced plans to close 27 stores, leaving roughly 1,100 locations nationwide.
