Kohl’s has fired CEO Ashley Buchanan after an investigation found he told the company to enter two business deals involving a romantic partner, according to a report.
Buchanan, who took on the position in January, was fired Wednesday after an investigation found he directed Kohl’s to enter a “highly unusual” business deal with a company whose founder he had personal ties to, SEC filings indicate. The terms of that business deal were “favorable” to the vendor, the filings state.
He also entered Kohl’s into a “multi-million dollar” consulting agreement with a team that the individual was part of, the filings indicate. He then failed to disclose that personal relationship to Kohl’s, violating the company’s code of ethics.
The filing did not identify the founder and consultant. But, The Wall Street Journal reports her name is Chandra Holt and the two had a romantic relationship.
Buchanan and Holt met while they were both working at Walmart, according to the Journal.
Buchanan left Walmart in 2020 to serve as CEO of Michaels, while Holt left in 2021 to serve as CEO of Bed Bath and Beyond. She later became a consultant and founded Incredibrew, a coffee brand containing vitamins and minerals.
Buchanan reshared one of Holt’s posts advertising the product on LinkedIn earlier this year.
In addition to leaving his post, Buchanan must now forfeit all equity awards from Kohl’s. He also has to reimburse the company on a prorated basis for his $2.5 million signing bonus.
Kohl’s Chair of the Board Michael Bender will now serve as interim CEO.
This comes after Kohl’s announced it will be closing more than two dozen “underperforming stores” this year. The company closed 15 of these stores at the end of March, and will also shutter its San Bernardino E-commerce Fulfillment Center this month.
Kohl’s 2024 financial report showed a 7.2 percent decrease in net sales to $15.4 billion. In addition, Kohl’s comparable sales dropped by 6.5 percent.
“We have identified key areas of focus and are taking action in 2025 to reposition Kohl’s for future success,” Buchanan said earlier this year. “Our customers expect great product, great value, and a great experience from Kohl’s. I am confident that the areas we identified will deliver on what customers want and expect from Kohl’s.”
The Independent has contacted Buchanan and Holt for comment.
