Kohl’s CEO Ashley Buchanan Fired Over Shocking Vendor Scandal.
Kohl’s has abruptly fired CEO Ashley Buchanan just five months into his tenure following an explosive investigation that uncovered serious violations of company policy.
The iconic department store chain announced Thursday that Buchanan directed the company to engage in vendor transactions riddled with undisclosed conflicts of interest.
Leadership Turmoil at Kohl’s
Ashley Buchanan, who took the reins in November 2024, was seen as a potential game-changer after the brief leadership of Tom Kingsbury, who himself stepped down after only a year.
But hopes for a turnaround were dashed when a board-led investigation revealed Buchanan’s involvement in shady vendor deals that violated Kohl’s strict ethical policies.
“This is a serious breach of trust and company policy,” Kohl’s stated in a press release that sent shockwaves through the retail sector.
Ashley Buchanan’s ouster marks the third CEO departure at Kohl’s in less than three years. Before Buchanan, Kingsbury held the position, following the 2022 exit of Michelle Gass, who left under pressure from activist investors.
The rapid turnover at the top raises serious questions about the company’s corporate governance and future stability.
As Kohl’s scrambles to stabilize, the board has launched a search for Buchanan’s successor. Analysts warn that the leadership chaos could spook investors and further erode customer confidence.
“This level of executive turnover is highly unusual and deeply concerning for a retailer of Kohl’s size,” said retail industry expert Maria Edwards. “The vendor conflict scandal could have long-term financial and reputational consequences.”
Following the announcement, Kohl’s stock experienced a sharp dip in after-hours trading, with market watchers bracing for possible lawsuits or regulatory scrutiny stemming from the vendor dealings.
Buchanan’s dismissal marks the third CEO departure at Kohl’s in less than three years, underscoring deeper challenges at the struggling retailer.
Before Buchanan, Tom Kingsbury served as CEO beginning in early 2023, after previously leading Burlington Stores.
He was brought in as a stabilizing figure following the departure of Michelle Gass in December 2022, who had faced mounting pressure from activist investors, including Ancora Holdings, over disappointing sales and strategic missteps.
Michelle Gass, who had steered the company since 2018, was initially credited with modernizing Kohl’s and launching partnerships with brands like Amazon and Sephora.
However, critics argued her initiatives failed to reverse declining store traffic and sluggish e-commerce growth. Under her leadership, Kohl’s also faced a failed acquisition bid and activist investor campaigns demanding leadership changes.
Tom Kingsbury attempted to streamline operations and refresh Kohl’s merchandise strategy, but persistent profit margin pressures and competitive threats from online retailers like Amazon and discounters like TJX Companies continued to plague the company.
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