Kohl’s CEO fired for unethical conduct, sends shockwaves through retail industry
Shreeaa Rathi | TIMESOFINDIA.COM | May 01, 2025, 22:08 IST
( Image credit : AP )
In a surprising turn of events, Kohls has parted ways with its CEO, Ashley Buchanan, due to allegations of unethical behavior linked to undisclosed conflicts of interest in vendor dealings. Michael Bender, the company's chairman, steps in as interim CEO during this transitional phase.
In a stunning shake-up that has rocked the retail world, Kohl’s has dismissed its newly appointed CEO, Ashley Buchanan, after less than five months on the job due to unethical behavior. The decision, labeled as a termination “for cause,” underscores serious concerns about corporate governance at the struggling department store chain.
Buchanan, who joined Kohl’s on January 15, 2025, with high hopes of turning the tide for the embattled retailer, was found to have violated company policy by initiating vendor transactions that involved undisclosed conflicts of interest. This revelation followed an investigation conducted by independent legal counsel.
Kohl’s emphasized that the dismissal had nothing to do with its financial performance, reporting, or operations, nor did it implicate any other employees. However, the damage to the company’s image may already be done.
Buchanan previously served as CEO of Michaels, a major arts and crafts chain, before taking the helm at Kohl’s. His appointment was seen as a bold move to revitalize a brand grappling with shifting consumer preferences, rising inflation, and fierce competition from e-commerce giants. Unfortunately, during his short tenure, the company’s preliminary earnings indicated a 4.3% drop in sales—far from the turnaround investors had hoped for.
In response to the leadership vacuum, Kohl’s Chairman Michael Bender will step in as interim CEO while the board searches for a permanent replacement. The market responded positively to the news, with Kohl’s shares (KSS) climbing as much as 8% in intraday trading.
Retail expert Neil Saunders, Managing Director of GlobalData Retail, criticized the upheaval, calling Buchanan’s exit “a distraction the company does not need and can ill afford.” He added that while the firing wasn’t related to performance, it “gives the impression that Kohl’s is in a perpetual state of chaos” and raises questions about the due diligence process behind Buchanan’s appointment. “It’s a blow upon a bruise,” Saunders concluded.
Kohl’s challenges extend beyond executive turnover. The retailer is navigating a tough economic landscape characterized by decreased consumer spending, surging costs, and digital disruption. In a bid to streamline operations, Kohl’s recently announced the closure of 27 underperforming stores, trimming its total to around 1,100 locations nationwide.
As the company attempts to regroup, all eyes will be on its next move—not just in leadership, but in its broader strategy to stay relevant in an increasingly digital, value-conscious retail environment.
Will Kohl’s rebound from this leadership debacle, or is it a sign of deeper issues plaguing the once-dominant department store? Only time will tell, but for now, the retailer finds itself at yet another crossroads.
Would you like me to help format this for publication or submission to a news outlet?
Buchanan, who joined Kohl’s on January 15, 2025, with high hopes of turning the tide for the embattled retailer, was found to have violated company policy by initiating vendor transactions that involved undisclosed conflicts of interest. This revelation followed an investigation conducted by independent legal counsel.
Kohl’s emphasized that the dismissal had nothing to do with its financial performance, reporting, or operations, nor did it implicate any other employees. However, the damage to the company’s image may already be done.
Buchanan previously served as CEO of Michaels, a major arts and crafts chain, before taking the helm at Kohl’s. His appointment was seen as a bold move to revitalize a brand grappling with shifting consumer preferences, rising inflation, and fierce competition from e-commerce giants. Unfortunately, during his short tenure, the company’s preliminary earnings indicated a 4.3% drop in sales—far from the turnaround investors had hoped for.
In response to the leadership vacuum, Kohl’s Chairman Michael Bender will step in as interim CEO while the board searches for a permanent replacement. The market responded positively to the news, with Kohl’s shares (KSS) climbing as much as 8% in intraday trading.
Retail expert Neil Saunders, Managing Director of GlobalData Retail, criticized the upheaval, calling Buchanan’s exit “a distraction the company does not need and can ill afford.” He added that while the firing wasn’t related to performance, it “gives the impression that Kohl’s is in a perpetual state of chaos” and raises questions about the due diligence process behind Buchanan’s appointment. “It’s a blow upon a bruise,” Saunders concluded.
Kohl’s challenges extend beyond executive turnover. The retailer is navigating a tough economic landscape characterized by decreased consumer spending, surging costs, and digital disruption. In a bid to streamline operations, Kohl’s recently announced the closure of 27 underperforming stores, trimming its total to around 1,100 locations nationwide.
As the company attempts to regroup, all eyes will be on its next move—not just in leadership, but in its broader strategy to stay relevant in an increasingly digital, value-conscious retail environment.
Will Kohl’s rebound from this leadership debacle, or is it a sign of deeper issues plaguing the once-dominant department store? Only time will tell, but for now, the retailer finds itself at yet another crossroads.
Would you like me to help format this for publication or submission to a news outlet?