Kohl’s fires new CEO 'for cause,' names interim chief
Kohl’s Corp. has fired its chief executive four months after he stepped into the role.
The struggling department store retailer has terminated Ashley Buchanan for cause, following an investigation conducted by outside counsel and overseen by the audit committee of its board. The investigation found that Buchanan violated company policies “by directing Kohl’s to engage in vendor transactions that involved undisclosed conflicts of interest.”
“Mr. Buchanan's termination is unrelated to the company's performance, financial reporting, results of operations and did not involve any other company personnel,” Kohl’s said in a statement.
Buchanan took the reins of Kohl’s in January, succeeding Tom Kingsbury, who decided to retire. Buchanan joined the company from Michaels Companies, where he had served as CEO since 2020. Prior to that, Buchanan held a variety of senior executive roles at Walmart and Sam's Club.
Buchanan’s exit is a “distraction that the company does not need and can ill afford,” Neil Saunders, managing director of GlobalData Retail, said in a note as reported by CNN.
“While the sacking is not related to performance, it gives the impression that Kohl’s is in perpetual state of chaos and it raises some questions about the due diligence over his appointment,” he said
Kohl’s has appointed Michael Bender as interim chief, effective immediately. Bender has served as a director of the board since July 2019 and was appointed board chair in May 2024. Kohl’s said it will initiate a search to identify a permanent CEO.
Bender was president and CEO of Eyemart Express from January 2018 to April 2022, after serving as president from September 2017 to January 2018. Prior to Eyemart Express, Bender held various executive management positions at Walmart Inc.
"The board has full confidence in Michael to serve our customers and associates as interim CEO and deliver on our commitments to our shareholders,” stated John Schlifske, chair of the nominating and ESG committee. “Michael brings over three decades of leadership experience across retail and consumer goods companies, having served as CEO of Eyemart Express and in senior roles at Walmart, L Brands and PepsiCo.”
Kohl's provided a preliminary outlook for its first quarter, forecasting comparable sales would be down 4.3% to 4%. Operating income is seen in the range of $40 million to $45 million, and diluted earnings per share is seen in the range of down 24 cents to 20 cents.
