Kohl’s terminates CEO for questionable business deal with romantic partner

Kohl’s made headlines when they terminated their new CEO, Ashley Buchanan, for failing to disclose a conflict of interest. The company announced that Buchanan had violated policies by engaging in vendor transactions that involved undisclosed conflicts of interest. This decision was not related to the retailer’s overall performance, financial reporting, or operations. As a result, Michael Bender, the current chairman of Kohl’s board, has stepped in as the interim CEO until a permanent replacement is found.

While Kohl’s did not provide specifics about the investigation into Buchanan, reports suggest that the conflicts of interest revolved around a romantic partner of the former CEO. Buchanan allegedly directed Kohl’s to enter into a business deal with Chandra Holt, the founder and CEO of Incredibrew, a specialty coffee brand. According to sources, Buchanan’s personal relationship with Holt led to highly unusual terms that favored the vendor.

An SEC filing revealed that Buchanan had instructed Kohl’s to conduct business with a vendor with whom he had a personal relationship under favorable terms. Additionally, he facilitated a multi-million-dollar consulting agreement where the same individual was part of the consulting team. Despite confirming a long-standing relationship with Buchanan, Holt denied receiving any compensation from Kohl’s for her business.

Kohl’s, a retail chain with over 1,100 stores across 49 states, has faced challenges in recent years, announcing plans to close 27 locations following sales declines. Buchanan, who previously served as the CEO of Michaels, took on the leadership role at Kohl’s in January 2024 but was ousted after less than 100 days in the position.

The swift removal of Buchanan underscores the importance of transparency and adherence to corporate policies in the business world. Kohl’s decision to part ways with their CEO highlights the consequences of failing to disclose conflicts of interest and upholding ethical standards in the workplace. As the company navigates this leadership transition, they are focused on finding a permanent replacement to lead the organization into the future.