Kohl's has made the sudden decision to fire its recently appointed CEO, Ashley Buchanan, after uncovering unethical behavior during his short tenure. The retailer confirmed Buchanan’s dismissal was "for cause," following an independent investigation that revealed he violated company guidelines. According to the findings, Buchanan was involved in vendor agreements that created undisclosed conflicts of interest.
The company clarified that Buchanan’s firing was unrelated to financial performance, business results, or the work of other employees. His actions, however, were deemed serious enough to warrant immediate removal.
Buchanan, who previously served as CEO of arts and crafts retailer Michaels, stepped into the top role at Kohl’s on January 15 with hopes of revitalizing the brand. But his leadership faced early challenges, with sales dipping as much as 4.3% during his brief time in charge.
As a result of his departure, Michael Bender — the current chairman of Kohl’s board — has stepped in as interim CEO while the company searches for a permanent replacement. Despite the shake-up, investors responded positively to the news, sending Kohl’s stock up nearly 8%.
Industry experts weighed in on the situation, describing the abrupt exit as a distraction Kohl's could ill afford. Neil Saunders of GlobalData Retail noted that while the firing wasn’t related to business performance, it underscores the company’s ongoing instability and raises questions about its executive hiring process.
Kohl’s has faced mounting difficulties in recent years as it struggles to adapt to evolving consumer habits. The company has been hit hard by increased competition from online retailers, inflation, and shifting spending patterns. Adding to its challenges, Kohl’s recently confirmed the closure of 27 stores, leaving it with about 1,100 locations nationwide.
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