Ashley Buchanan: Kohl’s Has Just Sacked Its New CEO For Unethical Actions.

Kohl’s Corporation made headlines today, May 1st, 2025, by abruptly firing its CEO, Ashley Buchanan, after an internal investigation revealed he violated company policies. Buchanan, who had been in the role for less than five months, was terminated “for cause” following findings that he directed the retailer to engage in vendor transactions involving undisclosed conflicts of interest. This rare and serious action by the board underscores the importance of ethical leadership at one of America’s largest department store chains.

The Investigation and Immediate Aftermath

The investigation into Buchanan’s conduct was conducted by outside counsel and overseen by Kohl’s Audit Committee. It determined that Buchanan had instructed the company to pursue business deals with vendors where he had personal connections, failing to disclose these relationships as required by Kohl’s code of ethics. In one notable instance, the company entered into a multimillion-dollar consulting agreement with a vendor linked to Buchanan, under terms unusually favorable to the vendor. As a result, Buchanan will forfeit all equity awards and must repay a portion of his $2.5 million signing bonus.

Kohl’s emphasized that Buchanan’s dismissal was unrelated to the company’s financial performance, reporting, or the actions of other employees. The board acted swiftly to contain the fallout, making it clear that integrity and transparency remain central to the company’s values.

Leadership Transition

With Buchanan’s sudden exit, Kohl’s appointed Michael Bender, the board chairman, as interim CEO. Bender brings over three decades of experience in retail and consumer goods, having previously held leadership roles at companies such as Eyemart Express, Walmart, L Brands, and PepsiCo. The board expressed full confidence in Bender’s ability to provide stability and guide the company through this transition while the search for a permanent CEO begins.

Bender’s immediate focus is on maintaining operational stability and continuing to execute Kohl’s strategic framework. He has pledged to work closely with the leadership team and board to ensure that the company’s goals of efficiency, simplification, and improved profitability are met.

Ongoing Challenges for Kohl’s

Kohl’s has faced significant headwinds in recent years. Like many traditional department stores, it has struggled to adapt to rapidly changing consumer behavior, increased competition from online retailers, and ongoing economic pressures such as inflation and cautious consumer spending. The company has reported declining sales, with preliminary figures showing a drop of up to 4.3% in the first quarter of 2025. In response, Kohl’s has closed 27 stores, leaving around 1,100 locations nationwide, as part of its efforts to streamline operations and focus on more profitable markets.

Leadership instability has also been a recurring issue for Kohl’s. Buchanan’s firing marks the third CEO change in as many years, following the departures of Tom Kingsbury and Michelle Gass. This turnover has added to the challenges of executing a consistent turnaround strategy and restoring investor confidence.

The Importance of Ethical Leadership

The decision to terminate a CEO for cause, especially so soon after their appointment, is a rare and consequential move in the corporate world. It highlights the critical importance of ethical conduct at the highest levels of management. Undisclosed conflicts of interest can severely damage a company’s reputation and erode trust among investors, employees, and customers. By acting decisively, Kohl’s board has sent a strong message about its commitment to upholding ethical standards and protecting the company’s long-term interests.

Looking Ahead

Kohl’s is now focused on stabilizing its leadership and continuing its efforts to adapt to a challenging retail environment. The board has engaged an executive search firm to help identify a permanent CEO who can lead the company through its next phase. The new leader will be tasked with revitalizing sales, enhancing the customer experience, leveraging digital channels, and ensuring operational efficiency.

The outcome of this leadership change will be closely watched by the retail industry. For Kohl’s, the path forward will depend on its ability to restore stability, rebuild trust, and execute a strategy that meets the evolving needs of today’s consumers.

In summary, the events of May 1, 2025, mark a pivotal moment for Kohl’s. The company’s swift response to ethical violations at the top sends a clear signal about its values and priorities. As Kohl’s navigates this transition, its future will hinge on strong, principled leadership and a renewed focus on operational excellence.