Kohl’s CEO Fired for Undisclosed Vendor Conflict

Kohl's has fired CEO Ashley Buchanan after less than five months, following an internal investigation that found he directed the company into vendor transactions involving undisclosed conflicts of interest with a personal acquaintance, a violation of company policy. Buchanan, who previously served as CEO of Michaels and held executive roles at Walmart, failed to disclose his relationship with the vendor, resulting in his termination for cause and the forfeiture of significant compensation. The board emphasized that his dismissal was unrelated to Kohl's financial performance, although the company continues to face serious challenges, including a Q4 2024 sales decline of over 9% and a net income drop of more than 74%. Michael Bender, board chair and a director since 2019, has been named interim CEO as the company searches for a permanent replacement. The leadership change comes amid recent layoffs, the closure of 27 underperforming stores, and ongoing reduced consumer demand. Investors initially responded positively to the board's decisive action, signaling confidence in its oversight.