Kohl’s terminates CEO following controversial business transaction involving romantic partner.

Kohl’s Corporation has officially announced the termination of its CEO, Ashley Buchanan, due to serious breaches of company policy involving undisclosed conflicts of interest. The decision was communicated to the public on Thursday, following the conclusion of an internal investigation revealing that Buchanan directed the company to engage in vendor transactions that were compromised by personal relationships.

Buchanan, who took the reins of the struggling retailer earlier this year on January 25, 2024, has now been removed from his position in less than 100 days. The board of directors stated that the termination was not linked to the company’s operational performance, financial stability, or the actions of other personnel within the organization.

In the wake of Buchanan’s dismissal, Michael Bender, the current chair of the Kohl’s board, has been appointed as the interim CEO. He will oversee the company’s operations while the search for a permanent successor proceeds.

While specifics of the investigation remain undisclosed by the company, reports indicate that the alleged conflicts of interest pertain to a romantic relationship Buchanan had with Chandra Holt, the founder and CEO of Incredibrew, a specialty coffee brand. Sources close to the matter revealed that Buchanan’s decision-making led Kohl’s to pursue a business deal with Holt that reportedly included terms unusually favorable to the vendor involved.

In addition, it has been alleged that Buchanan oversaw a multi-million-dollar consulting agreement that included Holt as part of the consulting team. An SEC filing indicated that he had steered the company toward dealings that were marked by what were described as “highly unusual terms.”

Holt herself acknowledged that she had known Buchanan for a decade but denied receiving any improper compensation related to the business dealings with Kohl’s. She stated that there was no financial incentive provided by Kohl’s for her Incredibrew brand.

For context, Kohl’s is based in Menomonee Falls, Wisconsin, and operates over 1,100 stores across 49 states. Earlier this year, the company disclosed plans to close 27 locations in 15 states following an extended period of declining sales, amounting to 11 consecutive quarters of decreased revenue. Buchanan, previously the CEO of the arts and crafts retailer Michaels, faced a challenging environment during his brief tenure at Kohl’s.

Media News Source will continue to monitor developments regarding Kohl’s leadership and its strategic direction in a competitive retail landscape.