Kohl’s Corp. (Menomonee, Wis.) announced its board has fired Ashley Buchanan for violating company policy by engaging in vendor transactions that involved undisclosed conflicts of interest. Board Chair Michael Bender has been named Interim CEO, effective immediately, and a search is underway for a permanent replacement.
Buchanan’s sudden exit comes less than four months after he was named to the job. Here’s what the retailer had to say about why Buchanan was dismissed:
“An investigation conducted by outside counsel and overseen by the Audit Committee of the Board determined Mr. Buchanan violated company policies by which the Board determined to be cause. Mr. Buchanan’s termination is unrelated to the company’s performance, financial reporting, results of operations and did not involve any other company personnel.”
In its coverage of the news, the Milwaukee Journal Sentinel reported the conflict involved Buchanan directing the retailer to do business with his romantic partner. That situation included doing a deal whose terms were “highly unusual” and “favorable to the vendor,” Kohl’s said in a filing with the Securities and Exchange Commission.
“Buchanan also directed Kohl’s to ‘enter a multi-million dollar consulting agreement’ with a consulting team that included that same person, according to the filing,” the newspaper continued. “In both cases, Kohl’s said, Buchanan failed to disclose his personal relationship with the individual.”
Bender, Buchanan’s successor on an interim basis, has served on the retailer’s board since July 2019 and was appointed Chair a year ago.
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“The board has full confidence in Michael to serve our customers and associates as Interim CEO and deliver on our commitments to our shareholders,” said 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. We look forward to continuing to work closely with Michael as Kohl’s remains focused on operational excellence, simplification and efficiency to improve long-term financial health and profitability.”
Kohl’s operates 1100-plus stores in 49 states.
