Kohl's CEO Ashley Buchanan fired after investigation

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FILE - A Kohl's store in Pleasant Hill, California, on Nov. 25, 2024. Photographer: David Paul Morris/Bloomberg via Getty Images

MENOMONEE FALLS, Wis. - Kohl's has fired its recently-named CEO Ashley Buchanan after an investigation determined that he violated company policies.

The news comes less than four months after Buchanan stepped into the role in January. 

Here’s what to know:

CEO Ashley Buchanan fired, Kohl’s says

What we know:

In an announcement on Thursday, Kohl’s said its board terminated Buchanan after the investigation determined that he "violated company policies by directing the Company to engage in vendor transactions that involved undisclosed conflicts of interest."

Buchanan’s termination followed a probe conducted by outside counsel and overseen by the board’s audit committee, according to the Securities and Exchange Commission filing. 

It found Buchanan had directed Kohl’s to conduct business with a vendor founded by an individual with whom Buchanan has a personal relationship on "highly unusual terms favorable to the vendor" and that he also caused Kohl’s to enter into a multimillion-dollar consulting agreement with the same individual who was a part of the consulting team.

It also found that in neither case did Buchanan disclose this relationship as required under Kohl’s code of ethics.

What we don't know:

Additional details about the investigation into Buchanan's violation of company policies were not shared. 

Dig deeper:

In connection with Buchanan’s termination and in accordance with the terms of his equity award agreements, he will forfeit all equity awards he received from the company, including the recruitment awards made as of January 15, according to the filing. Buchanan will also be required to reimburse Kohl’s for a pro rata portion of his signing incentive in the amount of $2.5 million, according to the documents.

The company noted how Buchanan’s firing is unrelated to its performance, financial reporting, results of operations and did not involve any of its other employees.

The backstory:

Buchanan took the job on Jan. 15, succeeding Tom Kingsbury – who stayed on as an adviser and is retaining his position on Kohl’s board until his retirement next month. Kingsbury served as Kohl’s interim CEO in December 2022 and was named its permanent leader in February 2023.

Big picture view:

Buchanan’s appointment marks the third CEO for Kohl’s in three years as the department store struggles to reverse sluggish sales by middle-income shoppers pulling back on discretionary spending. The company, which operates 1,600 stores across the U.S., has also faced stiff competition from Walmart and Amazon, and like other retailers, is confronting uncertainty surrounding President Donald Trump’s expansive tariffs.

As part of efforts to boost its profitability, the company announced plans to close some "underperforming" stores and trimmed its corporate workforce in recent months.

What's next:

Kohl's is slated to release its first-quarter financial results in late May.