Kohl’s Corporation said Thursday it has fired CEO Ashley Buchanan for cause after an investigation found he had violated the company’s conflict-of-interest policies.
Buchanan was terminated after an external investigation found that he directed the company to engage in transactions that involved “undisclosed conflicts of interest,” according to the company’s statement.
An April 30 regulatory filing indicates that Buchanan conducted business with a vendor with whom he has a personal relationship, and that he failed to disclose the connection as required by the company’s code of ethics. Buchanan’s dismissal, which comes just months after he was tapped to lead the retailer, will require him to forfeit his equity awards.
Buchanan must also repay Kohl’s a pro rata portion of his signing bonus of $2.5 million, the filing added.
“He also caused the company to enter into a multi-million dollar consulting agreement wherein the same individual was a part of the consulting team,” the filing says.
Shares of the Menomonee Falls, Wisconsin-based retailer, which operates about 1,600 stores across the U.S., rose 51 cents, or 7.5% to $7.20 in late morning trading.
Buchanan’s ouster
In its statement, Kohl’s Corporation said that Buchanan’s termination, which was effective April 30, was not related to the company’s performance, financial reporting or results of operations.
Buchanan’s ouster comes just months after he began his CEO role at Kohl’s on Jan. 15 with the mandate of revitalizing a business wrestling with sluggish sales. Its middle income shoppers have pulled back on discretionary spending in the face of still-high prices for necessities.
Like other department stores, it’s also faced stiff competition from Walmart and Amazon, which have been improving their fashion offerings at affordable prices. And like other retailers, it is facing uncertainty surrounding President Trump’s expansive tariffs.
Reached for comment, a Kohl’s spokesperson referred CBS MoneyWatch to the company’s press release and regulatory filing.
Kohl’s said it has appointed Michael Bender, its board chair, to serve as interim chief executive officer. “I am honored to assume the role of Interim CEO at this important time for the Company,” Mr. Bender said in the statement announcing the CEO transition.
Prior to taking the position at Kohl’s Corporation, Buchanan was CEO of Michaels Companies, which oversees the operation of Michael’s, the craft store. Buchanan also held variety of senior executive roles at Walmart and Sam’s Club, according to The Associated Press.
contributed to this report.
