Kohl’s fires CEO Ashley Buchanan after finding conflicts of interest. He was hired in January – Milwaukee Journal Sentinel
2025-05-01T13:44:57Z
Kohl’s Corp. has fired CEO Ashley Buchanan after just four months on the job − the latest in a series of negative developments for one of Wisconsin’s largest companies.
AI-assisted summary Kohl’s Corp. fired CEO Ashley Buchanan after four months for violating company policies involving undisclosed conflicts of interest.
Buchanan’s termination was unrelated to company performance and no other personnel were involved.
Board Chair Michael Bender will serve as interim CEO while a search for a permanent replacement is conducted.
Buchanan’s compensation package exceeded $20 million, while the company experienced declining sales and profits during his tenure.
Buchanan’s firing comes as Kohl’s and other retailers face a possible economic slowdown tied to trade wars.
Kohl’s Corp. has fired CEO Ashley Buchanan after just four months on the job for reportedly steering business to a romantic partner — the latest in a series of negative developments for one of Wisconsin’s largest companies.
Buchanan was fired after he violated company policies by directing Kohl’s “to engage in vendor transactions that involved undisclosed conflicts of interest,” the Menomonee Falls-based department store operator announced May 1.
The Wall Street Journal reported that Buchanan struck a “multi-million dollar” deal with Chandra Holt, a consultant and the founder of Incredibrew, a coffee brand infused with vitamins and minerals.
The Journal said Buchanan and Holt knew each other from when they both worked at Walmart years ago.
“Mr. Buchanan’s termination is unrelated to the Company’s performance, financial reporting, results of operations and did not involve any other Company personnel,” the Kohl’s statement said.
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The firing occurs as Kohl’s and other retailers face the prospects of a slowing economy tied to trade wars.
Kohl’s board of directors chair Michael Bender has been named interim CEO while the company conducts a search to replace Buchanan.
With a base salary and stock options, Buchanan had a total compensation package worth more than $20 million, making him one of the highest paid Wisconsin executives.
That was significantly higher than the compensation for his predecessor, Tom Kingsbury.
Kohl’s faces declining sales, profit
Kohl’s on March 11 reported a 9.4% sales decline, and a 74.2% profit decline, during the pivotal fourth quarter of 2024 that included the holiday shopping season.
Buchanan, whose brief Kohl’s tenure included the final two weeks of the fourth quarter, made his first public remarks to shareholders and analysts during an earnings presentation.
“A lot of the issues really were self-inflicted over many years of decisions,” Buchanan said. “We have a very loyal customer. When I toured stores, I heard how much they love Kohl’s. And what I realized was we’re kind of making it harder for them to love us.”
Buchanan took over as CEO on Jan. 15.
“Today is my first day as Chief Executive Officer at Kohl’s,” Buchanan posted on his LinkedIn profile. “I love working in retail and I’m thrilled to be joining this great company.”
He was the company’s third leader in four years — at a time of store closings, declining sales and a stock price which had fallen by 50% since early 2024.
“Kohl’s frequent management changes have made long-term planning difficult at a time when department stores are under siege from competition,” Morningstar analyst David Swartz said in a note to investors.
“Kohl’s has had three straight years of declining sales, and we had hoped that Buchanan could bring a fresh perspective,” Swartz wrote.
Before being named Kohl’s CEO, Buchanan spent four years as the leader of crafts retailer Michael’s Co. − where he struck a deal to sell the company to private equity investors.
Trump tariffs raise possible retail slowdown
Buchanan’s firing comes as Kohl’s faces the possibility of an economic slowdown tied to President Donald Trump’s tariffs on imported goods.
Those will raise the price of imports, including clothing, shoes, toys and other items made in China which the retailer sells − which could put pressure on its profit margin.
“Unexpected leadership change obviously adds to overhang on the story, occurring as the company works through turnaround strategies and navigates tariff/macro uncertainty,” said Baird analyst Mark Altschwager in a report to investors.
The company’s preliminary first quarter results are above expectations, Altschwager wrote.
But Baird is maintaining its full-year earnings per share estimates “as we expect tariff headwinds will drive downward pressure in future quarters,” his report said.
Altschwager said it wouldn’t be a surprise if Kohl’s pulls its annual earnings guidance. He said Baird expects “we’ll be further trimming forward estimates” after the company reports first quarter earnings on May 29.
Baird’s new $8 share price target “reflects reduced valuation assumptions,” Altschwager wrote.
Morningstar is maintaining its $41 per share fair value estimate and views Kohl’s shares as extremely undervalued, Swartz said.
While Kohl’s is “in desperate need of changes, we think a downsized Kohl’s can achieve higher profitability,” he wrote.
The company’s stock closed on May 1 at $7.22 a share, a 7.8% increase.
Interim CEO has been Kohl’s director since 2019
Bender, Buchanan’s interim successor, served as president and CEO of optical retailer Eyemart Express from 2018 to 2022.
Prior to joining Eyemart Express, Bender held executive positions at Walmart Inc. He’s served as a Kohl’s director since 2019 and was named board chair in May 2024.
Bender will remain on the board but will step down from certain board committees while serving as interim CEO. A new board chair will be announced “in due course,” the company said.
“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 board’s Nominating and ESG Committee, in a statement.
Buchanan’s April 30 termination also reduced the board’s size from 12 to 11 directors, according to a Kohl’s filing with the U.S. Securities and Exchange Commission.
That leaves nine directors standing for re-election at the May 14 annual shareholder meeting.
Kohl’s is one of Wisconsin’s largest companies, ranking 235th of companies nationwide on the 2024 Fortune 500.
It has roughly 4,000 Milwaukee-area corporate employees and thousands of other workers around the state.
(This story has been updated with new information.)
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