Kohl’s ousts CEO Buchanan after investigation into some vendor transactions

Kohl’s has terminated CEO Ashley Buchanan, who just started the department store chain’s helm in January, after an investigation determined that he directed the retailer to engage in vendor transactions that involved undisclosed conflicts of interest.

Kohl’s named Chairman Michael Bender as interim CEO, effective immediately.

Kohl’s said Thursday that Buchanan’s firing is unrelated to its performance, financial reporting, results of operations and did not involve any of its other employees.

Kohl’s will conduct a search for a permanent CEO and said it will name a new chair in due course. The company couldn’t be immediately be reached for comments.

The news comes nearly four months after Buchanan, who had been the CEO of arts and crafts chain Michaels, took over the job in January.

Buchanan had succeeded Tom Kingsbury, who stayed on as an adviser and is retaining his position on Kohl’s board until his retirement next month. Kingsbury served as Kohl’s interim CEO in December 2022 and was named its permanent leader in February 2023.

The firing comes at a time when Kohl’s, which operates 1,600 stores across the country, is wrestling with sluggish sales. Its middle income shoppers have pulled back on discretionary spending in the face of still-high prices for necessities. Like other department stores, it’s also faced stiff competition from Walmart and Amazon, which have been improving their fashion offerings at affordable prices. And like other retailers, it is facing uncertainty surrounding President Donald Trump’s expansive tariffs.

On Thursday, the company offered a preliminary look at sales and profits for the current quarter that showed continued weakness. It said that it expects to report a decline in comparable sales in the range of 4.3% to 4%, and a loss of 24 cents to 20 cents per share. It expects to report final first-quarter results on May 29.

Shares of the company, based in Menomonee Falls, Wisconsin, rose 6.4% in morning trading.