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Ashley Buchanan has been fired as CEO of Kohl's, the company announced on Thursday, May 1. The chain's board removed Buchanan based on findings from an outside counsel-led investigation overseen by the Kohl's audit committee.
Board chair Michael Bender, the former CEO of Eyemart Express, will step in as interim CEO.
"Working with our talented leadership team, board, and thousands of associates, I am committed to continuing the execution of our strategic framework to grow shareholder value," said Bender.
The Wall Street Journal reported that Buchanan was discovered to have signed two large deals with Chandra Holt, the former CEO of Bed, Bath & Beyond. The two were previously in a romantic relationship while working together at Walmart.
Buchanan also reportedly had Kohl's sign a multimillion-dollar agreement with Holt's consulting team, despite never disclosing his relationship with Holt to the Kohl's board. Buchanan's firing means he has lost all equity awards and must repay his $2.5 million signing bonus.
Buchanan took over as CEO in January after serving in the same position at crafts retailer Michaels. His tenure was also marked by sales declining by up to 4.3% in the first quarter of 2025, according to a preliminary financial report.
Kohl's said Buchanan's "for cause" termination didn't involve any other company employees and was not tied to the company's financial performance. He was also removed from the board and his name has been withdrawn from consideration in an upcoming shareholder vote.
Bender will stay on the board but step down from several committee roles during his interim tenure. A new chair will be named soon, the company said.
The leadership shakeup follows the closing of 27 underperforming Kohl's locations, including stores in Massachusetts, New Jersey, Pennsylvania, and Virginia. The company is also shutting down its e-commerce fulfillment center in San Bernardino, California, in May.
The Wisconsin-based department store chain will begin a search for a permanent CEO with help from a national executive search firm.
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