Why Kohl’s Fires CEO Ashley Buchanan After Just 4 Months?

Kohl’s has fired its CEO, Ashley Buchanan, after only four months on the job. An investigation found he broke the company’s conflict-of-interest rules. The retailer announced the decision on Thursday.

Buchanan, who became CEO in January, was accused of directing Kohl’s to work with vendors tied to him personally. He did not disclose these connections, which violated company policies. An outside law firm led the probe, overseen by Kohl’s audit committee.

What Happened?

• Buchanan pushed Kohl’s to sign deals with a vendor linked to someone he knew.

• The vendor got a multimillion-dollar consulting deal with unusually good terms.

• Buchanan failed to reveal his ties to the vendor, which was against company rules.

Consequences for Buchanan

• He loses all stock awards from Kohl’s.

• He must pay back part of a $2.5 million signing bonus.

• The company said his firing was “for cause,” meaning he was let go due to misconduct.

Who’s Replacing Him?

Kohl’s named Michael Bender, a board member since 2019, as the interim CEO. Bender became board chair just last month.

How Did Investors React?

Kohl’s stock rose nearly 6% to $7.09 after the news. The company also shared early first-quarter results, showing sales dropped 4% to 4.3%.

Kohl’s CEO Struggles

The retailer has had three CEOs in three years as it fights falling sales:

1. Michelle Gass (left in 2022 for Levi’s)

2. Tom Kingsbury (lasted less than two years)

3. Ashley Buchanan (fired after four months)

Kohl’s, based in Menomonee, Wisconsin, is a budget department store chain. It has been trying to turn around weak sales for years.

What’s Next?

The company is now searching for a permanent CEO. Meanwhile, Bender will lead until a replacement is found.