Ashley Buchanan’s tenure as CEO of Kohl’s was abruptly cut short in May 2025, less than four months after his appointment. The company terminated him “for cause” following an external investigation that uncovered serious ethical violations.
What Happened?
The investigation revealed that Buchanan had directed Kohl’s to enter into a multimillion-dollar consulting agreement with a vendor connected to Chandra Holt, a former CEO of Bed Bath & Beyond and then a senior adviser at Boston Consulting Group (BCG). Crucially, Buchanan failed to disclose a personal, romantic relationship with Holt, breaching the company’s code of ethics. This undisclosed conflict of interest led to unusually favorable business terms for the vendor, raising serious concerns about corporate governance and accountability.
Consequences and Fallout
As a result of his actions, Buchanan was required to forfeit all equity awards and repay a portion of his $2.5 million signing bonus. Additionally, his nomination for re-election to Kohl’s board was withdrawn. The board appointed Michael Bender, the company’s chairman, as interim CEO during the transition period.
Despite the leadership upheaval, Kohl’s released preliminary first-quarter guidance indicating a smaller-than-expected decline in sales, with anticipated losses per share of 20 to 24 cents, compared to analysts’ predictions of a steeper drop.The company’s stock price rose nearly 4% following the announcement, though it remains down approximately 50% for the year.
Background on Buchanan
Before joining Kohl’s, Buchanan served as CEO of The Michaels Companies, an arts and crafts retailer, from 2020 to 2025. Under his leadership, Michaels underwent significant transformation, including a $5 billion acquisition by Apollo Global Management in 2021. Prior to Michaels, Buchanan held various senior roles at Walmart and Sam’s Club, including Chief Merchandising and Chief Operating Officer for Walmart U.S. eCommerce.
Broader Implications
Buchanan’s dismissal highlights the growing emphasis on ethical conduct and transparency in corporate leadership. His ouster follows a series of high-profile cases where executives were removed due to ethical breaches, underscoring the importance of maintaining trust and integrity in business practices.
As Kohl’s navigates this leadership transition, the company faces the challenge of rebuilding its brand and customer base amid ongoing retail sector challenges. The board’s swift action in addressing the ethical violations reflects a commitment to upholding corporate standards and restoring stakeholder confidence.
