American retail chain Kohl’s has terminated CEO Ashley Buchanan following an investigation that uncovered undisclosed conflicts of interest in vendor transactions .
Effective immediately, chairman Michael Bender has been appointed interim CEO. As part of the transition, Bender will step down from the board's audit, compensation, and nominating and ESG committees, according to a regulatory filing cited by the Associated Press.
Buchanan’s dismissal comes less than four months after he assumed the role on January 15, having previously led Michaels arts and crafts chain. He was Kohl’s third CEO in as many years, taking the helm at a time when the company faced declining sales and mounting competition.
Kohl’s clarified that Buchanan’s termination is unrelated to the company's financial performance, reporting, or the conduct of other employees.
According to an SEC filing , the decision followed an external investigation led by the board’s audit committee. The probe found Buchanan had arranged business transactions with a vendor established by a personal associate, granting the firm unusually favorable terms, including a substantial consulting agreement. Crucially, he failed to disclose these relationships as required by the company’s code of ethics.
As a result, Buchanan will forfeit all equity awards, including those granted as part of his recruitment package in January. He is also required to repay £2.5 million as a prorated portion of his signing bonus. His nomination to the board has been withdrawn ahead of the company’s annual shareholders’ meeting on May 14.
Buchanan had succeeded Tom Kingsbury, who stepped in as interim CEO in December 2022 and was later made permanent CEO in February 2023. Kingsbury remains with the company as an advisor and board member until his upcoming retirement.
Kohl’s, which operates around 1,600 stores across the US, continues to face headwinds, including a drop in discretionary spending by its core middle-income customers due to inflationary pressures. The company also contends with stiff competition from Walmart and Amazon, particularly in affordable fashion, and broader uncertainty tied to President Donald Trump 's sweeping tariff policies.
Despite these challenges, Kohl’s preliminary first-quarter results released Thursday slightly beat expectations. The company expects a comparable sales decline of 4.3 to 4 per cent and a net loss of 20 to 24 cents per share—better than analyst estimates of a 6.4 per cent sales drop and 54-cent loss, according to FactSet.
Final quarterly results will be announced on May 29. Shares of the Menomonee Falls, Wisconsin-based retailer rose nearly 9 per cent in late morning trading.
Effective immediately, chairman Michael Bender has been appointed interim CEO. As part of the transition, Bender will step down from the board's audit, compensation, and nominating and ESG committees, according to a regulatory filing cited by the Associated Press.
Buchanan’s dismissal comes less than four months after he assumed the role on January 15, having previously led Michaels arts and crafts chain. He was Kohl’s third CEO in as many years, taking the helm at a time when the company faced declining sales and mounting competition.
Kohl’s clarified that Buchanan’s termination is unrelated to the company's financial performance, reporting, or the conduct of other employees.
According to an SEC filing , the decision followed an external investigation led by the board’s audit committee. The probe found Buchanan had arranged business transactions with a vendor established by a personal associate, granting the firm unusually favorable terms, including a substantial consulting agreement. Crucially, he failed to disclose these relationships as required by the company’s code of ethics.
As a result, Buchanan will forfeit all equity awards, including those granted as part of his recruitment package in January. He is also required to repay £2.5 million as a prorated portion of his signing bonus. His nomination to the board has been withdrawn ahead of the company’s annual shareholders’ meeting on May 14.
Buchanan had succeeded Tom Kingsbury, who stepped in as interim CEO in December 2022 and was later made permanent CEO in February 2023. Kingsbury remains with the company as an advisor and board member until his upcoming retirement.
Kohl’s, which operates around 1,600 stores across the US, continues to face headwinds, including a drop in discretionary spending by its core middle-income customers due to inflationary pressures. The company also contends with stiff competition from Walmart and Amazon, particularly in affordable fashion, and broader uncertainty tied to President Donald Trump 's sweeping tariff policies.
Despite these challenges, Kohl’s preliminary first-quarter results released Thursday slightly beat expectations. The company expects a comparable sales decline of 4.3 to 4 per cent and a net loss of 20 to 24 cents per share—better than analyst estimates of a 6.4 per cent sales drop and 54-cent loss, according to FactSet.
Final quarterly results will be announced on May 29. Shares of the Menomonee Falls, Wisconsin-based retailer rose nearly 9 per cent in late morning trading.
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