Kohl’s Removes CEO Ashley Buchanan Amid Ethics Scandal

In a surprise move that has stunned the retail world, Kohl’s Corporation announced on April 30, 2025, that its Chief Executive Officer, Ashley Buchanan, had been terminated with immediate effect. The decision followed an internal investigation which found Buchanan had committed a serious breach of company ethics by failing to disclose a conflict of interest related to vendor relationships. The development has raised serious questions about leadership oversight and the importance of transparency at the executive level.

Buchanan’s Tenure at Kohl’s

Ashley Buchanan was brought in as CEO in 2020, tasked with transforming Kohl’s amid rising competition from online retailers and shifting consumer behavior. Prior to joining Kohl’s, he had served as Chief Merchandising and Chief Operating Officer at Walmart’s e-commerce division. With a background steeped in digital innovation and retail operations, Buchanan was seen as the ideal choice to modernize the Kohl’s brand.

His initiatives included the high-profile partnership with Sephora, a revamp of store layouts, and efforts to streamline product offerings. These strategies showed promise, especially in attracting younger demographics. However, not all initiatives met expectations. Despite signs of progress, performance metrics continued to lag behind forecasts, and investor patience began to wear thin.

Whistleblower Triggers Internal Probe

Early in 2025, a whistleblower tip was submitted to Kohl’s internal audit committee. The anonymous complaint alleged that Buchanan had a personal connection with an individual tied to a consulting firm that had secured favorable vendor contracts. This prompted the board to launch a full-scale internal investigation, handled by an independent law firm.

The investigation revealed that Buchanan had previously been in a romantic relationship with Chandra Holt, a retail executive who was financially connected to a vendor that Kohl’s had recently engaged. The key issue was Buchanan’s failure to disclose this past relationship while overseeing contract approvals that directly benefited Holt’s affiliated firm.

Violation of Company Ethics Policy

Kohl’s has a strict code of ethics that requires executives to disclose any personal relationships that may interfere with their ability to make objective business decisions. The code emphasizes transparency and mandates that all conflicts of interest be declared and reviewed by the board or a designated ethics committee.

According to the investigation, Buchanan did not disclose his relationship with Holt during procurement discussions. More importantly, he did not recuse himself from contract approvals involving her affiliated firm. By participating in those decisions, he violated Kohl’s conflict of interest policy, even if no direct financial gain was proven.

The board considered the violation serious enough to warrant termination for cause.

Financial and Legal Consequences for Buchanan

Buchanan’s termination came with immediate financial consequences:

• Forfeiture of Unvested Equity: All stock options and performance shares granted to him during his tenure were voided.

• Repayment of Signing Bonus: A prorated portion of a $2.5 million signing bonus from earlier in the year will be reclaimed by the company.

• No Severance: Because his termination was for cause, Buchanan will receive no severance package, which would have otherwise been substantial.

• Board Disqualification: Buchanan was immediately removed from the company’s board and will not be eligible for re-election.

These actions send a clear message about Kohl’s zero-tolerance policy toward ethical violations at the executive level.

Transition to Interim Leadership

In the wake of Buchanan’s departure, Kohl’s appointed Michael Bender as interim CEO. Bender, who currently serves as the chair of the board, is a former Walmart executive with a deep understanding of retail dynamics. His immediate focus will be to stabilize operations, reassure investors, and guide the company through the CEO transition process.

The board has also retained an executive search firm to identify potential permanent candidates. The goal is to have a new CEO in place by the third quarter of 2025.

Q1 Earnings Offer Some Relief

Shortly after announcing Buchanan’s termination, Kohl’s released its preliminary Q1 earnings. While total sales had declined by 4.2% compared to the previous year, operating income was estimated to come in between $40 million and $50 million. These results, though modest, exceeded internal projections and helped cushion the stock from severe losses.

Following the news, Kohl’s shares fell approximately 2% in after-hours trading but stabilized by the next day. Analysts attributed the limited market reaction to the swift and transparent handling of the leadership change.

Industry Reaction and Public Perception

The retail industry responded to Buchanan’s dismissal with a mix of surprise and support. Executives from competing firms privately acknowledged the importance of strong governance protocols. Some saw the move as a necessary but painful example of enforcing ethical standards at the highest level.

Public reaction, especially on social media, was largely supportive of Kohl’s decision. Many consumers praised the company for taking ethical violations seriously, especially during a time when public trust in corporate leadership remains fragile.

Broader Lessons on Governance

The incident underscores the growing importance of ethical leadership and corporate transparency. Experts say that boards must remain vigilant and not hesitate to act when there are signs of ethical compromise, regardless of an executive’s past successes.

It also highlights the need for:

• More rigorous conflict-of-interest disclosure processes

• Stronger third-party oversight for procurement decisions

• Increased use of independent audits and whistleblower protections

Companies that fail to enforce such standards risk not only financial losses but long-term damage to their brand reputation.

What’s Next for Ashley Buchanan?

Buchanan’s future in the corporate world is now uncertain. While his experience in retail and digital commerce is considerable, the ethics breach may make it difficult for him to secure executive roles in the near future—particularly within public companies. His next move may involve consulting or positions in private firms where the spotlight is less intense.

As of now, Buchanan has not released a public statement in response to the termination.

Kohl’s Strategic Priorities Moving Forward

With leadership in transition, Kohl’s must now refocus on its strategic goals. These include:

• Enhancing its e-commerce platform to better compete with digital-first retailers.

• Expanding its Sephora partnership, which has been one of the few bright spots in recent quarters.

• Right-sizing its store footprint to improve cost efficiency.

• Improving internal culture and transparency following this high-profile controversy.

The company has committed to a full review of its governance practices, including vendor contract management and executive oversight.

Final Thoughts

The firing of Ashley Buchanan marks a pivotal moment for Kohl’s. While the specific circumstances relate to an ethical lapse, the broader issue is one of trust, transparency, and the expectations placed on modern corporate leadership. Buchanan’s dismissal, though disruptive, was handled decisively and transparently—qualities that will be essential as Kohl’s charts its future path.

With steady interim leadership and a commitment to reform, Kohl’s has an opportunity to emerge stronger from this crisis. The coming months will be critical as the company seeks to restore trust, execute its strategy, and find a new CEO who can lead with integrity and vision.

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