Kohl’s Corp. announced Thursday it has fired Chief Executive Officer Ashley Buchanan for cause following an internal investigation that found he directed vendor transactions involving undisclosed conflicts of interest.
The company’s board of directors named Michael Bender, board chair since May 2024 and a director since 2019, as interim CEO effective immediately.
“The investigation, conducted by outside counsel and overseen by the board’s audit committee, determined that Mr. Buchanan violated the company’s policies,” the company said in a statement. “The board determined this to be cause for termination.”
Buchanan, who became CEO in January after previously leading Michaels Companies and serving in senior roles at Walmart and Sam’s Club, was also removed from the board. His nomination for re-election at the 2025 annual meeting has been withdrawn.
“The board has full confidence in Michael to serve our customers and associates as interim CEO and deliver on our commitments to our shareholders,” said John Schlifske, chair of the nominating and ESG committee. “Michael brings over three decades of leadership experience across retail and consumer goods companies.”
Bender previously served as CEO of Eyemart Express and held senior roles at Walmart, L Brands and PepsiCo.
“I am honored to assume the role of interim CEO at this important time for the company,” Bender said. “Working with our talented leadership team, board and thousands of associates, I am committed to continuing the execution of our strategic framework to grow shareholder value.”
The leadership change comes amid ongoing struggles for the department store chain, which has seen declining revenue and multiple CEO transitions in recent years.
In fiscal 2024, Kohl’s reported net sales of $15.4 billion, down 7.2% from the previous year, and comparable sales fell 6.5%. Operating income dropped to $433 million from $717 million a year earlier.
Thursday’s announcement also included preliminary first-quarter 2025 results, with the company projecting a comparable sales decline of 4.3% to 4.0% and a diluted loss per share between 24 and 20 cents. Final results will be released May 29.
Kohl’s stock rose more than 6% in morning trading following the news, but remains down over 50% for the year.
The company has also undertaken cost-cutting measures, announcing in January the closure of 27 underperforming stores and a 10% reduction in corporate staff.
Kohl’s operates approximately 1,150 stores across the U.S. and has recently leaned into strategic partnerships, including Sephora shop-in-shops and a new collaboration with Babies “R” Us.
