In a stunning turn of events, American retail giant Kohl’s has terminated its newly appointed CEO, Ashley Buchanan, just over three months after he took office. The firing comes after an internal investigation revealed Buchanan had pushed through questionable business deals with a vendor with whom he had a personal relationship—without disclosing the conflict of interest.
According to a company filing released on Thursday, Buchanan orchestrated transactions with the vendor under “highly unusual terms.” Additionally, he facilitated a multi-million-dollar consulting deal involving a team that included the individual he was romantically linked to. These actions raised red flags and ultimately led to his dismissal.
Buchanan’s abrupt exit marks the third leadership change in as many years at Kohl’s, underscoring ongoing instability at the top of the embattled department-store chain. The company has been grappling with sluggish sales, fierce competition from e-commerce players and retail giants like Walmart, and strategic missteps that have hindered its growth.
Ironically, news of Buchanan’s firing coincided with better-than-expected preliminary results for the first quarter of 2025. Kohl’s stock surged 8.4% on Thursday, offering a brief glimmer of hope for investors, although shares remain down roughly 70% over the past year.
Buchanan was appointed CEO in November 2024, officially stepping into the role in January. One of his first major actions as CEO was to slash 10% of Kohl’s corporate workforce in an effort to cut costs and improve margins. He joined the company from Michaels Companies, where he served as CEO, and had previously held leadership roles at Walmart’s U.S. e-commerce division.
As a consequence of his termination, Buchanan is forfeiting all stock awards, including $15 million in restricted stock that would have vested over three years. He is also required to repay $2.5 million of his $3.75 million signing bonus.
“This situation is unfortunate, but Kohl’s needed to act swiftly to protect its integrity and long-term strategy,” said David Swartz, a retail analyst at Morningstar Research. “The company is in dire need of consistent leadership and a revamped business model.”
Kohl’s has named board member Michael Bender as interim CEO while it launches a formal search for a permanent replacement. The retailer emphasized that Buchanan’s dismissal will not affect the company’s financial reporting or its workforce beyond his own departure.
Despite the leadership turmoil, Kohl’s reported that comparable first-quarter sales are expected to drop between 4% and 4.3%, which is a smaller decline than the 6.34% analysts had predicted. The company anticipates a quarterly loss per share between $0.20 and $0.24—better than the forecasted $0.52 loss.
Kohl’s is scheduled to release its full first-quarter financial results on May 29.
