Let's Get the Scoop:
- Ashley Buchanan, previously booted as CEO of Kohl's, has gone Walkabout due to his shady dealings with some suppliers. The department store dropped him like a hot potato after discovering he was knee-deep in vendor transactions that had undisclosed conflicts of interest. A press release didn't spill the beans on the specific suppliers or the deals in question.
- Michael Bender, Kohl's Board Chair, steps up as the Interim CEO Dude to keep the ship afloat while they find a suitable replacement for Buchanan. Buchanan, who was the former CEO of Michaels, has been shown the door, along with his nomination to continue as a director.
- According to testimonials, Buchanan got the axe from Kohl's following an investigation by outside lawyers. Reportedly, he was playing favorites in a company with a business partner he's got a personal relationship with, and he struck a sweetheart deal with a vendor featuring terms that Favored Freddy tremendously. Financial filings reveal a cunning consulting agreement worth millions.
- The vendor in question used to be a top executive at Bed Bath & Beyond, and Buchanan and this fellow go way back - all the way to their days at Walmart. The Journal shed some light on this, confirming that Buchanan and the vendor are an item. Kohl's isn't dropping any names concerning the vendor.
- The question of Buchanan's shady business dealings arises: Was this dodgy shit going down at Michaels or Walmart, too? Mark Cohen, a retail heavyweight and former retail study guru at Columbia Business School, wonders the same thing.
- Kohl's kept their lips sealed, referring only to the press release and financial disclosures. Michaels and Walmart didn't budge in response to Retail Dive's inquiry, neither confirming nor denying anything.
- Kohl's made it crystal clear that Buchanan's firing had nothing to do with the company's performance, financial reporting, or operational results. Instead, he's seeing stars because of his failure to disclose the relationship as required by the company's ethical rules; the board found his conduct to be a gross violation worthy of termination, according to their CEO compensation agreement.
- With Buchanan gone, Kohl's is crawling, scratching through tough times. GlobalData Managing Director Neil Saunders commented, "This departure only stabs Kohl's in the back at a time it's already vulnerable."
- The start of 2025 wasn't exactly rosy for Kohl's, with layoffs and store closures. In March, Kohl's reported that its Q4 sales tobogganed more than 9%, and net income plummeted a whopping 74%. Comparable sales in that quarter lost almost 7%. Kohl's expects Q1 comps to take a dive as much as 4.3%.
- In February, analysts from Fitch Ratings bumped Kohl's up a notch, assigning it a negative outlook and citing "ongoing operational challenges," but noting that the company has a reasonable asset base and can shell out $400 million on capex for topline initiatives.
- All it took was four months for Buchanan to exit the door. Kohl's must find a successor sharp as a tack, ready to steer this ship and breathe some fresh life into the company. "It might be a formidable task to find the right person to share Kohl's dark journey," Saunders said. "Given the chain's current state, it's a Herculean undertaking to turn things around."
- Ashley Buchanan, the former CEO of Kohl's, is currently absent and is being replaced by Michael Bender as the Interim CEO, following Buchanan's dismissal due to undisclosed conflicts of interest.
- The vendor at the center of the conflict was a former top executive at Bed Bath & Beyond, with Buchanan and this individual having a past relationship that dates back to their days at Walmart.
- Mark Cohen, a retail expert, wonders whether similar shady dealings occurred at Michaels or Walmart, where Buchanan had also previously held CEO positions.
- Kohl's maintains that Buchanan's termination was due to his failure to disclose the relationship as required by ethical rules and punishable according to the CEO compensation agreement.
- Kohl's is currently facing tough times, with layoffs, store closures, and a significant decline in sales and net income, as reported in March 2025.
- Analysts from Fitch Ratings assigned a negative outlook to Kohl's, citing "ongoing operational challenges" but noting that the company has a robust asset base and the capacity to invest $400 million in capital expenditures for topline initiatives.
- Neil Saunders, Managing Director at GlobalData, commented that Buchanan's departure comes at a vulnerable time for Kohl's and that finding a new CEO capable of turning the company around would be a daunting task given its current state.
CEO of Kohl's dismissed due to allegations of tangled business dealings
