CEO Ashley Buchanan has been terminated just four months into his tenure following revelations of undisclosed conflicts of interest involving his romantic partner, Chandra Holt.
An internal investigation by Kohl’s audit committee uncovered that Buchanan directed the company to enter into a multimillion-dollar consulting agreement with Incredibrew, a coffee company founded by Holt, without disclosing their personal relationship. The terms of the deal were described as unusually favorable to the vendor.
Buchanan and Holt, who previously worked together at Walmart, reportedly have a longstanding personal relationship. Holt denied any wrongdoing or financial benefit from the deal and claimed she was not in a relationship with Buchanan when he previously tried to hire her at Michaels, where he served as CEO.
As a result of the findings, Buchanan was dismissed “for cause,” leading to the forfeiture of all equity awards and a requirement to repay a portion of his $2.5 million signing bonus.
In light of Buchanan’s dismissal, Kohl’s has named board director Michael Bender as interim CEO. Bender acknowledged concerns about the vetting process that led to Buchanan’s hiring, stating that the decision to dismiss him was necessary for the integrity of the company.
The scandal has drawn significant media attention and raised concerns over corporate governance and ethical conduct at the retailer. Following the news, Kohl’s shares rose 7.6% to $7.21.
