Kohl's has fired its newly appointed CEO following an internal probe that revealed he had entered into a "highly unusual" business arrangement with a woman he was previously romantically involved with, according to a report.
Ashley Buchanan, who took over as CEO of the department store chain only four months ago, was found to have directed Kohl's to "engage in vendor transactions that involved undisclosed conflicts of interest," the company announced on Thursday. The conflicts centered on Buchanan's personal relationship with Chandra Holt, a former Walmart colleague, according to a Wall Street Journal report. Kohl's filing did not name Holt, but it unraveled shocking things about Buchanan and his lover.
Shocking Revelations
Kohl's filing revealed that the vendor in question had secured a multimillion-dollar consulting contract with unusually favorable terms. Holt is the founder and chief executive officer of Incredibrew, a coffee company that blends its products with added vitamins and minerals, . according to her LinkedIn profile.
"I've known Ashley Buchanan for 10 years, but I have not received any compensation for my Incredibrew business from Kohl's," Holt told the Wall Street Journal.
Buchanan and Holt met at Walmart and rose through the ranks before quitting the company around the same time to take leadership roles at different Texas-based companies.
Buchanan departed Walmart in early 2020 to take over as CEO of Michaels, while Holt left in 2021 to head Conn's HomePlus as its chief executive.
In 2023, Holt took on the role of CEO at Beyond Inc., the parent company of Overstock.com and Bed Bath & Beyond, where she served for a year.
Change of Ranks after Unexpected Ouster
Kohl's has appointed board member Michael Bender as interim CEO, effective immediately. Bender, who joined the board in July 2019, was named chairman in May 2024. Following the announcement, Kohl's stock jumped nearly 6%, reaching $7.09.
An internal probe led by the audit committee concluded that Buchanan failed to disclose certain vendor relationships that were considered improper. As a result, he was fired for cause.
According to regulatory filings, Buchanan will lose all of his stock-based compensation and must repay a portion of his $2.5 million signing bonus to Kohl's.
Kohl's said that Buchanan's termination did not impact the company's financial results, as it reported preliminary figures for the first quarter indicating a decline in comparable sales of between 4% and 4.3%.
The discount retailer, headquartered in Menomonee Falls, Wisconsin, has cycled through three CEOs in as many years while grappling with falling sales.
Buchanan succeeded Tom Kingsbury, who served for under two years after taking over from Michelle Gass, who left the company to join Levi's.
