Ashley Buchanan - 5 Shocking Facts Behind Kohl’s Firing of its CEO

By Lrnin News Desk
Published: May 1, 2025

In a dramatic shake-up at one of America’s largest retail chains, Ashley Buchanan has been fired from his role as CEO of Kohl’s Corporation, effective immediately. The termination comes amid serious allegations of a conflict of interest related to a vendor transaction, according to an official company statement released on April 30, 2025.

Here’s what we know so far about this unexpected development and what it means for the future of Kohl’s.

Kohl’s board announced that Buchanan’s termination stemmed from “a violation of the company’s code of ethics and conduct in connection with a vendor relationship.” While specific details remain confidential, sources close to the matter indicate that the CEO failed to disclose personal ties to a vendor recently awarded a major contract.

2. Ashley Buchanan Did Not Receive Severance

The decision to terminate Buchanan “for cause” means he will not receive any severance benefits, including stock options or bonus payouts. This marks a clear signal from the board that the breach was serious and non-negotiable.

3. Interim Leadership Has Been Appointed

In the wake of Buchanan’s departure, Tom Kingsbury, a former CEO of Burlington Stores and current Kohl’s board member, has been appointed as interim CEO. The company has launched a search for a permanent replacement but has not specified a timeline.

4. Shares Remained Stable Despite the Shakeup

Interestingly, the announcement did not rattle investors as much as expected. Kohl’s stock (KSS) remained largely stable in post-market trading, suggesting confidence in the board’s handling of the situation and in interim leadership.

5. Buchanan’s Tenure Was Already Under Scrutiny

Ashley Buchanan took over as CEO in 2020 during a time of turbulent retail shifts due to the pandemic. While he was praised early on for digital transformation efforts, recent quarters showed slowing growth, leading to increased pressure from shareholders. His sudden exit may also be viewed as a result of compounding executive performance concerns.

What’s Next for Kohl’s?

Kohl’s is now under the microscope as it navigates leadership changes amid an evolving retail landscape. The board has emphasized its commitment to ethical governance, saying it will “take all necessary steps to ensure transparency and accountability.”

For Ashley Buchanan, this marks a swift and high-profile fall from grace—one that could impact his future roles in the corporate world.

Why Kohl’s Fired CEO Ashley Buchanan: Conflict of Interest Explained

In a sudden corporate shakeup, American retail giant Kohl’s has fired its CEO, Ashley Buchanan, following the discovery of undisclosed conflicts of interest in vendor transactions. The board’s decision, effective immediately, comes less than four months after Buchanan took the helm, marking another chapter of instability at the top of the struggling retailer.

Conflict of Interest Behind the Dismissal

The termination stems from an external investigation commissioned by the company’s audit committee, as revealed in a regulatory filing cited by the Associated Press. According to an SEC filing, Buchanan had arranged favorable business transactions with a vendor founded by a personal associate, awarding the firm a substantial consulting agreement and unusually preferential terms.

Most critically, Buchanan failed to disclose these relationships, directly violating Kohl’s code of ethics.

Consequences for Buchanan

The fallout is significant. As part of the termination:

All equity awards granted to Buchanan, including recruitment-related incentives from January, are being forfeited.
He is required to repay £2.5 million as a prorated portion of his signing bonus.
His nomination to the board has been withdrawn ahead of the annual shareholders’ meeting on May 14.

Notably, Kohl’s clarified that the dismissal is not connected to the company’s financial performance, internal reporting, or the conduct of other employees.

Leadership Transition: Michael Bender Steps In

Michael Bender, Kohl’s chairman, has been named interim CEO while the board begins the search for a permanent replacement. To avoid conflicts of interest, Bender will step down from three key board committees: audit, compensation, and nominating & ESG.

Buchanan had succeeded Tom Kingsbury, who led Kohl’s as interim CEO in late 2022 before becoming permanent chief in early 2023. Kingsbury remains with the company in an advisory role until his planned retirement.

Kohl’s Struggles Amid Market Challenges

Buchanan’s brief tenure began on January 15, 2025, as Kohl’s faced:

Declining sales
Increasing competition from Amazon and Walmart
Shrinking discretionary spending among its middle-income customer base
Trade-related uncertainty under Donald Trump’s tariff policies

Despite these headwinds, the company’s preliminary Q1 earnings slightly outperformed expectations:

Expected comparable sales decline: 4.0% to 4.3%
Projected net loss: $0.20 to $0.24 per share, better than analyst forecasts of a $0.54 loss

Final quarterly results are due on May 29, and as of Thursday morning, Kohl’s shares jumped nearly 9% in response to the announcement.

Final Thoughts on Ashley Buchanan

Ashley Buchanan’s abrupt exit is a cautionary tale in corporate governance and ethical compliance. His dismissal, though not tied to company performance, reflects strict accountability standards in executive leadership. For law and business students preparing for competitive exams like CLAT PG, UGC NET, or MBA entrances, this case highlights crucial topics like fiduciary responsibility, conflict of interest, and board oversight in corporate law.

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