Kohl’s recently terminated its Chief Executive Officer of three months, Ashley Buchanan, after an internal investigation found that he had directed the company into two business deals involving an individual with whom he had personal ties. According to The Wall Street Journal, the individual is Chandra Holt, and the two had a prior working and romantic relationship.
A recent report shared that Buchanan instructed the company to conduct business that was “on highly unusual terms” and favorable for a vendor founded by the individual with whom he had a personal relationship. He also entered the company into a multi-million dollar consulting agreement with a consulting team in which the individual mentioned was a member. Buchanan did not disclose his relationship with the individual in either case, as required under the company’s code of ethics.
Buchanan joined Kohl’s in January after being CEO of the arts and crafts retail chain, Michaels. Before that, he was the chief merchandising officer and CEO of Walmart.com. It was at Walmart that he worked with Holt and developed a personal relationship outside of their working one.
The investigation that led to his immediate termination on April 30 was conducted by outside counsel and overseen by the Audit Committee of the Board. The company confirmed that Buchanan’s termination was “not related to the Company’s performance, financial reporting or results of operations, and did not involve any other Company personnel.”
As part of Buchanan’s termination, he was removed from the Board of Directors, will forfeit all equity awards from the company, and is also required to reimburse Kohl’s for his signing incentive for $2.5 million.
Chair of the Board Michael Bender Appointed Interim CEO
On the same day that Buchanan was terminated, Kohl’s appointed Chair of the Board, Michael J. Bender, to serve as Interim Chief Executive Officer. Bender has been a board director since 2019 and was appointed chair in 2024.
“The Board has full confidence in Michael to serve our customers and associates as Interim CEO and deliver on our commitments to our shareholders,” Chair of the Nominating and ESG Committee John Schlifske stated. “Michael brings over three decades of leadership experience across retail and consumer goods companies, having served as CEO of Eyemart Express and in senior roles at Walmart, L Brands and PepsiCo. We look forward to continuing to work closely with Michael as Kohl’s remains focused on operational excellence, simplification, and efficiency to improve long-term financial health and profitability.”
Bender will continue to serve on the Board of Directors but will step down from certain board committees while continuing in his role as chair during his time as interim CEO.
The board says it is retaining a leading search firm to assist with finding a qualified, long-term CEO to replace Buchanan and guide the company forward.
These developments for Kohl’s come after the company announced earlier this year that it would be closing 27 “underperforming stores” in 15 states, along with its San Bernardino E-commerce Distribution Center.
