From Yahoo Finance: 2025-05-01 11:07:00

Kohl’s CEO Ashley Buchanan has been ousted for cause by the board of directors due to undisclosed conflicts of interest in vendor relationships. Trading in Kohl’s shares was halted, but later rose over 9% after the announcement. Buchanan directed vendor transactions involving conflicts of interest, ultimately leading to his dismissal.

The investigation found that Buchanan pursued a “highly unusual” business arrangement involving a woman he had a romantic relationship with, who later became CEO of Bed Bath & Beyond. He directed Kohl’s to enter into a business agreement with her without disclosing the relationship, leading to his removal from the board and withdrawal as a nominee for reelection.

Buchanan, who took over as CEO in January, previously led Michael’s craft chain and held senior roles at Walmart and Sam’s Club. His compensation package totaled $20 million, more than double his predecessor’s, but he will have to return part of it due to his termination. The shake-up at Kohl’s comes amid retail pressure from inflation and tariffs.

Kohl’s reported a 9.4% decline in fourth-quarter revenue with same-store sales falling 6.7%. Adjusted earnings per share also dropped significantly. The company’s 2025 outlook predicts a further decline in same-store sales, casting doubt on its recovery efforts. Despite Buchanan’s attempts to cut costs, shares have plummeted.

In response to Buchanan’s departure, the board has named Michael Bender as interim CEO. Bender, who has been on the board since 2019, will lead the company through this transition. Buchanan’s brief tenure was marked by efforts to restructure and refocus the retailer, but the challenges remain as Kohl’s struggles to regain its footing in a competitive market.

Read more: Kohl’s stock rises after CEO ousted for inappropriate vendor relationships