Menomonee Falls, Wisconsin — Kohl’s has terminated Ashley Buchanan, its recently appointed chief executive, following an investigation into undisclosed conflicts of interest surrounding a business deal. Buchanan, who took the helm just four months ago, was found to have engaged in questionable transactions involving a vendor with whom he had a personal relationship.

The company disclosed that Buchanan directed Kohl’s to enter into deals that raised significant ethical concerns. Specifically, the investigation centered on his ties to Chandra Holt, a former Walmart colleague who is now the founder and chief executive of Incredibrew, a health-focused coffee brand. While the vendor’s relationship with Kohl’s was not explicitly named in corporate filings, the deal included unusually favorable terms for the vendor.

Holt stated that despite her professional connection to Buchanan, she has not received any financial compensation from Kohl’s related to her business. Both she and Buchanan had established careers at Walmart before moving to other Texas-based companies; Buchanan became the CEO of Michaels in early 2020, and Holt became CEO of Conn’s HomePlus in 2021.

Following the conclusion of the investigation, Kohl’s appointed Michael Bender, a board member since July 2019 and board chair since May 2024, as interim CEO. In a company-wide meeting, Bender and other executives sought to calm staff members after the unexpected leadership shakeup, although they did not provide further details or entertain questions. Bender acknowledged the unexpected turn of events, expressing disappointment while affirming that it was the necessary choice for the company.

Kohl’s shares experienced a boost, rising 7.6% to $7.21 following Buchanan’s ousting. The audit committee underscored that Buchanan had failed to disclose significant vendor relationships, warranting his termination. Consequently, he will forfeit all equity awards and must repay a portion of his signing bonus, valued at $2.5 million.

Kohl’s has faced ongoing leadership challenges, with three different CEOs in the past three years amidst declining sales. Preliminary first-quarter reports indicated that comparable sales might fall between 4% and 4.3%. Buchanan succeeded Tom Kingsbury, who had a brief tenure of less than two years, following Michelle Gass, who left Kohl’s to join Levi’s. This revolving door of leadership has raised concerns about the retailer’s ability to effectively navigate its financial difficulties.