In a shocking development, Kohl’s Corporation announced on May 1, 2025, that it has terminated its Chief Executive Officer, Ashley Buchanan, for violating company policies related to conflicts of interest. The decision, effective immediately, comes just over 100 days after Buchanan took the helm on January 15, 2025, with high expectations to revitalize the struggling department store chain. The news, reported within the last hour, has sent ripples through the retail industry, raising questions about Kohl’s leadership stability and future direction.
Who is Ashley Buchanan?
Ashley Buchanan, the now-former Kohl’s CEO, is a seasoned retail executive with a notable track record. Prior to joining Kohl’s, Buchanan served as the CEO of Michaels, the arts and crafts retailer, where he successfully led the company through a private equity acquisition. He also held senior roles at Walmart, including Chief Merchandising and Chief Operating Officer for Walmart U.S., showcasing his expertise in retail operations and merchandising. His appointment at Kohl’s was seen as a strategic move to reverse the retailer’s declining sales and adapt to shifting consumer trends. However, his abrupt dismissal has cast a shadow over his tenure.
The Conflict of Interest Scandal
The termination of Ashley Buchanan stems from an investigation conducted by outside counsel and overseen by Kohl’s Audit Committee. According to a company press release, Buchanan violated Kohl’s policies by directing the company to engage in vendor transactions that involved undisclosed conflicts of interest. Specifically, reports indicate that Buchanan steered business to a vendor with whom he had a personal relationship, described by some sources as a romantic partner. These transactions were conducted on “highly unusual terms” favorable to the vendor, including a multi-million-dollar consulting agreement involving the same individual.
The Kohl’s board determined that Buchanan’s actions constituted a breach of the company’s code of ethics, warranting his termination “for cause.” The company emphasized that the issue was unrelated to Kohl’s performance, financial reporting, or operations, and no other employees were implicated in the scandal. Buchanan is also required to repay a pro-rata portion of his $2.5 million signing bonus, underscoring the severity of the violation.
Michael Bender Steps In as Interim CEO
Following Buchanan’s ouster, Kohl’s has appointed Michael Bender, the company’s board chair, as interim CEO, effective immediately. Bender, who has served on the board since May 2024, brings extensive leadership experience from roles at Walmart (Chief Operating Officer for Global eCommerce), PepsiCo, and Eyemart Express, where he was CEO until 2022. The board expressed confidence in Bender’s ability to navigate Kohl’s through this transitional period, with a search for a permanent CEO already underway. Kohl’s also plans to announce a new board chair in the near future.
Kohl’s Challenges and Context
Kohl’s, a Wisconsin-based retailer with over 1,100 stores, has faced significant challenges in recent years, including declining sales and competition from e-commerce giants and discount retailers. The company recently announced the closure of 27 locations, reflecting broader struggles in the department store sector. Buchanan was the third CEO in three years, following Tom Kingsbury and Michelle Gass, highlighting the company’s leadership instability. His $20 million compensation package, more than double that of his predecessor, had drawn scrutiny, especially given Kohl’s projected first-quarter comparable sales decline of 4% to 4.3%.
The firing of Ashley Buchanan has sparked mixed reactions. Some investors appear optimistic about the change, with Kohl’s stock gaining 6.7% following the announcement, signaling confidence in Bender’s interim leadership. However, posts on X reflect shock and criticism, with users describing Buchanan’s actions as a “fumble” of his high-profile role and questioning the ethics of such a high-paid executive.
Implications for Kohl’s Future
The termination of Ashley Buchanan CEO marks a critical juncture for Kohl’s as it grapples with operational challenges and a competitive retail landscape. The scandal has raised concerns about governance and oversight within the company, particularly given Buchanan’s short tenure. The appointment of Michael Bender as interim CEO provides temporary stability, but the search for a permanent leader will be closely watched by investors and industry analysts.
As Kohl’s prepares to report its first-quarter earnings on May 29, 2025, the focus will be on how the company addresses its sales slump and repositions itself in a rapidly evolving market. The Buchanan scandal serves as a reminder of the importance of ethical leadership and transparency, especially for a retailer fighting to regain consumer trust and market share.
Conclusion
The firing of Ashley Buchanan for violating Kohl’s conflict-of-interest policies has stunned the retail world, underscoring the high stakes of corporate leadership. With Michael Bender stepping in as interim CEO, Kohl’s faces the dual challenge of stabilizing its leadership and executing a turnaround strategy. As the company moves forward, the fallout from this controversy will likely shape its reputation and strategic priorities in the months ahead.
Sources: Reuters, The Washington Post, Bloomberg, CBS News, The Wall Street Journal, May 1, 2025
