Kohl’s CEO Gets the Boot Over Secret Ties to Vendor: A Story of Drama, Stock Surges, and Retail Struggles

In a plot twist fit for a corporate thriller, Kohl’s just fired its CEO, Ashley Buchanan, after barely five months on the job. The reason? A secret personal relationship that crossed ethical lines and put the company’s reputation at risk. Let’s unpack what happened, why investors are cheering, and what this means for the future of the struggling retail giant.

The Sudden Exit: What Went Down?

Ashley Buchanan’s time as Kohl’s CEO came crashing down this week after an internal investigation uncovered some eyebrow-raising behavior. Turns out, Buchanan had been steering the company toward business deals with vendors tied to someone he had a romantic relationship with—and he didn’t bother to tell anyone at Kohl’s about it.

The investigation, led by an outside legal team, found that Buchanan pushed Kohl’s into agreements with a consulting firm that included a woman he was personally involved with. This vendor connection wasn’t just a minor oversight—it was a direct violation of Kohl’s ethics policies, which require employees to avoid conflicts of interest.

The woman in question, Chandra Holt, worked with Buchanan years ago at Walmart. She later became CEO of Bed Bath & Beyond and most recently served as a consultant for a company called Incredibrew. Buchanan allegedly helped secure a multi-million-dollar consulting deal for her team, all while keeping their relationship under wraps.

Kohl’s didn’t hold back. The board fired Buchanan “for cause”—a formal way of saying he broke serious rules—and even booted him from the board of directors. He’ll also have to give back part of his $2.5 million signing bonus and lose out on stock awards. Ouch.

Investors Are Weirdly Happy About It

Here’s the kicker: Kohl’s stock shot up nearly 9% after the news broke. Why? Because shareholders saw the board’s quick action as a sign that Kohl’s is serious about cleaning house. Investors hate uncertainty, and Buchanan’s shady dealings added drama the company didn’t need.

But let’s be clear: This isn’t a victory lap for Kohl’s. The company’s sales dropped 4.3% during Buchanan’s short stint, and it’s been stuck in a rut for years. Closing stores (27 locations so far), losing customers to online rivals, and battling inflation have left Kohl’s scrambling. Firing a CEO might distract from bigger problems, but Wall Street seems to think it’s a step in the right direction.

A History of CEO Chaos

Buchanan isn’t just any CEO. He was Kohl’s third leader in three years—a revolving door that hints at deeper issues. Before him, Michelle Gass stepped down in late 2022, and Tom Kingsbury briefly held the role. Buchanan, a former Michaels CEO and Walmart veteran, was supposed to be the turnaround hero. Instead, his tenure lasted less time than a season of Stranger Things.

His hiring came with a hefty price tag: a $20 million pay package, more than double what his predecessor earned. Now, that gamble has backfired spectacularly.

“A Blow Upon a Bruise”: What Experts Are Saying

Retail analysts aren’t mincing words. Neil Saunders of GlobalData Retail called the firing a “distraction Kohl’s doesn’t need” and criticized the board for not catching red flags during the hiring process. “It makes Kohl’s look like it’s in perpetual chaos,” he said.

Others worry the scandal will overshadow the real work needed to fix the business. Kohl’s isn’t alone in its struggles—department stores like Macy’s and JCPenney are also fighting to stay relevant as shoppers flock to Amazon, TikTok Shop, and fast-fashion apps. But firing a CEO over ethics breaches adds a layer of messiness that could scare off potential partners or customers.

What’s Next for Kohl’s?

For now, board chairman Michael Bender will step in as interim CEO. The company insists the scandal doesn’t involve other employees or affect its finances, but rebuilding trust won’t be easy. Here’s what’s on the to-do list:

1. Find a New CEO (Again): Kohl’s needs a leader who can stabilize the ship, not someone chasing shortcuts.

2. Fix the Sales Slump: With fewer stores and tighter budgets, Kohl’s must reinvent its appeal—maybe by leaning into trendy brands or better online deals.

3. Repair the Reputation: Transparency will be key. Shoppers and investors need to know Kohl’s is serious about ethical leadership.

The Bigger Picture: Retail’s Uphill Battle

Kohl’s drama is a symptom of a larger problem. Traditional retailers are stuck between a rock and a hard place:

. Online Competition: Why drive to a store when you can click “buy now” from your couch?

. Inflation: Prices are up, but wages haven’t kept pace, making shoppers pickier.

. Changing Tastes: Younger buyers want sustainability, exclusivity, and Instagram-worthy styles—things Kohl’s hasn’t nailed yet.

Closing stores might save money short-term, but it’s not a long-term fix. Kohl’s needs a fresh strategy, and fast.

Lessons Learned

Buchanan’s downfall is a cautionary tale for companies everywhere:

. Ethics Matter: Cutting corners or hiding relationships can blow up in your face.

. Due Diligence Is Key: Boards need to vet leaders thoroughly—no more skipping background checks.

. Investors Reward Accountability: Harsh but fair decisions can boost confidence, even in tough times.

The Bottom Line

Kohl’s stock surge might feel like a win, but the real test is ahead. Can the company move past this scandal, find a steady leader, and finally turn its business around? Or will it become another cautionary tale of a retail giant that couldn’t keep up?

One thing’s for sure: In the age of TikTok hauls and next-day delivery, Kohl’s can’t afford to play games. The stakes are too high—and shoppers aren’t waiting around.

What do you think? Can Kohl’s bounce back, or is this the beginning of the end? Let us know in the comments!