Kohl’s Corporation announced Thursday it has terminated CEO Ashley Buchanan for cause after an investigation revealed he directed the company to engage in vendor transactions involving undisclosed conflicts of interest.
The national retailer has appointed Michael Bender, who has served as a company director since July 2019 and was named board chair last May, as interim CEO effective immediately, according to a company statement.
“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.
An investigation conducted by outside counsel and overseen by the board’s Audit Committee determined Buchanan’s actions violated company policies, which the board deemed as cause for termination. The company emphasized the termination was unrelated to Kohl’s financial performance or reporting and did not involve other company personnel.
“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.”
Bender brings over three decades of retail leadership experience, having previously served as CEO of Eyemart Express from 2018 to 2022 and holding executive positions at Walmart, Cardinal Health, Victoria’s Secret and PepsiCo.
The board will initiate a search for a permanent CEO with assistance from a leading search firm. In accordance with his employment contract, Buchanan is no longer a board member, and the company has withdrawn his nomination for reelection at the upcoming 2025 Annual Meeting of Shareholders.
Financial outlook shows sales decline
In the same announcement, Kohl’s released preliminary financial expectations for the first quarter of 2025, projecting comparable sales declines between 4.0% and 4.3%. The company anticipates operating income between $40 million and $45 million, with diluted earnings per share expected to range from a loss of $0.20 to $0.24.
The retailer operates more than 1,100 stores across 49 states, serving over 60 million customers. Complete first quarter results will be announced on May 29.
