Kohl’s Corporation has terminated CEO Ashley Buchanan after an internal investigation revealed he directed the company into a multimillion-dollar vendor agreement involving undisclosed conflicts of interest with a former romantic partner, according to a company filing and reports by The Wall Street Journal.
Buchanan, who had only been in the role for four months, allegedly facilitated a vendor deal with Incredibrew, a wellness-focused coffee brand founded by Chandra Holt — a former Walmart colleague and reported ex-partner.
The vendor agreement reportedly featured “highly unusual” and favorable terms.
Holt, who confirmed a longstanding personal and professional relationship with Buchanan, denied any impropriety.
“I’ve known Ashley Buchanan for 10 years, but I have not received any compensation for my Incredibrew business from Kohl’s,” she said in a statement.
Kohl’s board swiftly named director Michael Bender as interim CEO.
Bender has served on the board since 2019 and was appointed chair earlier this year.
In a company-wide meeting, Bender stated the decision was necessary to maintain Kohl’s integrity.
Buchanan’s termination was “for cause,” and he will forfeit all equity awards and repay a prorated portion of his $2.5 million signing bonus.
The incident adds to Kohl’s ongoing leadership instability and financial strain.
The company is closing 27 stores and has cut 400 jobs amid a projected Q1 sales decline of over 4%.
Holt, a seasoned executive with prior leadership roles at Target, Walgreens, and Beyond Inc., has not been formally accused of wrongdoing but now finds herself at the center of a corporate governance controversy likely to impact her career.
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