According to a news release, the board terminated Buchanan “for cause” after an investigation by outside counsel found he had “violated company policies by directing the company to engage in vendor transactions that involved undisclosed conflicts of interest.”

The Wisconsin-based company added that Buchanan’s termination was “unrelated to the company’s performance, financial reporting, results of operations, and did not involve any other company personnel.”

Buchanan, the former CEO of arts and crafts retailer Michaels, was hired by Kohl’s in November and officially began his role on Jan. 15. He was expected to help reverse the company’s recent sales slump. However, sales declined by 4.3% during his brief tenure, according to a company preliminary earnings report obtained by CNN and Reuters.

Who is Chandra Holt and what is her history with Ashley Buchanan?

The Wall Street Journal later revealed more specifics of Buchanan’s ouster, reporting that Buchanan “directed the company to conduct business with a vendor founded by an individual who he had ties to. Kohl’s said that highly unusual terms favorable to the vendor were issued and that Buchanan caused the company to enter into a multimillion-dollar consulting agreement that the same individual was a part of. Kohl’s said Buchanan didn’t disclose this relationship as required by its code of ethics and determined the conduct in both cases constituted cause for termination.” According to the WSJ, this individual’s name is Chandra Holt,

and they had a romantic relationship and worked together at Walmart before Buchanan left to become the CEO of Michaels and she left to become the CEO of Bed, Bath & Beyond.

 

Michael Bender is named Kohl’s interim CEO

Board director Michael Bender was appointed interim CEO “effective immediately” and will serve until a permanent replacement is named, according to the news release.

“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 said in a news release statement.

“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 says he is  “committed” to working in his new role

Bender echoed similar sentiments, stating he is committed to working alongside Kohl’s leadership and staff to advance its strategy.

“I am honored to assume the role of Interim CEO at this important time for the Company,” Bender said. “Working with our talented leadership team, Board, and thousands of associates, I am committed to continuing the execution of our strategic framework to grow shareholder value.”

In March, Kohl’s announced it would permanently close 27 underperforming stores across several states in April, following a 9.4% drop in fourth-quarter sales in 2024, according to Blavity and USA Today.