Citing ‘undisclosed conflicts of interest,’ Kohl’s fires new CEO after less than 6 months

Kohl’s Corp. has fired its chief executive just months after he took the role, citing an investigation that found he behaved unethically.

The Menomonee Falls-based retailer made the announcement Thursday, saying its board of directors terminated CEO Ashley Buchanan “for cause.” The company is appointing Michael Bender, who has been on the board since 2019, as interim CEO.

According to Kohl’s, an investigation by outside counsel found that Buchanan violated company policies by directing Kohl’s to “engage in vendor transactions that involved undisclosed conflicts of interest.” He became CEO in January and was the company’s third chief executive in three years.

The company says Buchanan’s firing is not related to Kohl’s financial performance and announced it is launching a search for its next permanent CEO.

Buchanan has been removed from Kohl’s board of directors and his nomination for election as a director at the company’s upcoming annual shareholder meeting has also been withdrawn, the company said.

In a statement, Bender said he was honored to assume the role of interim CEO during what he called an “important time for the company.”

“I am committed to continuing the execution of our strategic framework to grow shareholder value,” Bender said. “Kohl’s has a strong foundation.”

Kohl’s has struggled over the last year. In January, the company announced plans to close 27 underperforming stores across the country.

In the final quarter of 2024, Kohl’s saw net sales decrease by 9.4 percent year-over-year and its operating income fell to $126 million compared to $299 million the prior year. The company says it plans to release its first quarter 2025 earnings data later this month.