Kohl’s Corporation has terminated CEO Ashley Buchanan after an internal investigation revealed he failed to disclose a personal relationship with a vendor, leading to business deals that violated the company’s ethics policies. The board announced that Michael Bender, the company’s chairman, will serve as interim CEO while a national search for a permanent replacement is conducted.
The investigation, conducted by external legal counsel and overseen by the board’s audit committee, found that Buchanan directed Kohl’s to engage in business with Incredibrew, a company founded by his romantic partner, Chandra Holt. The deals included a multimillion-dollar consulting agreement with terms that were unusually favorable to the vendor. Buchanan did not disclose his relationship with Holt, violating Kohl’s code of ethics.
As a result of these findings, Buchanan will forfeit all equity awards and is required to repay a portion of his $2.5 million signing bonus. The company emphasized that no other employees were implicated in the matter and that Buchanan’s termination was not related to Kohl’s financial performance or operations.
Buchanan’s tenure at Kohl’s was notably brief, having served as CEO for only four months since his appointment in January 2025. Prior to joining Kohl’s, he was the CEO of arts and crafts retailer Michaels and held senior roles at Walmart.
The leadership change comes at a challenging time for Kohl’s, which has been grappling with declining sales and increased competition from e-commerce and discount retailers. The company recently announced plans to close more than two dozen underperforming stores and reported a 7.2% decrease in net sales to $15.4 billion in its 2024 financial report.
Michael Bender, who has been a board member since 2019 and served as chairman since May 2024, brings over 30 years of leadership experience in the retail and consumer goods sectors, including roles at Walmart, L Brands, and PepsiCo. In his new role as interim CEO, Bender expressed his commitment to guiding Kohl’s through this transition and continuing the company’s strategic initiatives.
The board has initiated a formal search for a new permanent CEO and plans to announce a new chairperson in due time. The company aims to restore confidence among investors and customers as it navigates this leadership transition.
This incident underscores the importance of transparency and ethical conduct in corporate governance. As Kohl’s works to stabilize its leadership and operations, the company faces the ongoing challenge of adapting to a rapidly changing retail landscape.
