Honestly, the retail world moves fast, but nobody expected the Kohl’s leadership team to move this fast. Just months after he was brought in to save the struggling department store, the board made a move that sent shockwaves through the industry. On May 1, 2025, the news broke: Kohl's removes Ashley Buchanan as chief executive officer. It wasn't a standard "stepping down to spend more time with family" kind of exit. This was a "for cause" termination that left everyone's heads spinning.
Buchanan had only been in the big chair since January 15, 2025. That’s barely enough time to learn where the breakroom is, let alone overhaul a multi-billion dollar retailer.
The Investigation That Changed Everything
So, what actually went down? Most people think it was about the stock price or the fact that sales were dipping. It wasn't. Kohl’s was very clear that this had zero to do with financial performance or operational results. Instead, it was about a violation of the company’s code of ethics.
An internal investigation, spearheaded by outside legal counsel and the board’s audit committee, dug up some pretty messy details. They found that Buchanan had steered Kohl’s into vendor transactions that involved "undisclosed conflicts of interest." Basically, he was accused of doing business with a vendor founded by someone he had a personal, romantic relationship with.
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The terms of these deals? "Highly unusual" and "favorable to the vendor," according to the company's SEC filings. We’re talking about a multimillion-dollar consulting agreement with an individual who—per reports from the Wall Street Journal—was a former Bed Bath & Beyond executive Buchanan knew from his Walmart days.
A "Blow Upon a Bruise" for Kohl’s
Neil Saunders, an analyst over at GlobalData, called this situation a "blow upon a bruise." That’s a pretty perfect way to describe it. Kohl’s has been struggling for years. They’ve seen their market share erode as shoppers flock to Amazon or find better fashion deals at Walmart. They just can't seem to find their footing.
Before Buchanan, there was Tom Kingsbury. Before Kingsbury, there was Michelle Gass. That makes four CEOs in about four years. You can't build a culture or a long-term strategy when the person at the top keeps changing every time the seasons do. It creates a "perpetual state of chaos," as Saunders put it.
What happened to the money?
When you get fired "for cause," you don't exactly get a golden parachute. In fact, it's more like a lead weight. Because of the nature of his exit, Buchanan had to:
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- Forfeit all of his equity awards.
- Repay a pro-rata portion of his massive $2.5 million signing bonus.
- Step down from the board of directors immediately.
It’s a massive fall from grace for a guy who was once the "golden child" of retail, having come over from a successful stint as CEO of Michaels and high-level roles at Sam’s Club.
Who is Running the Show Now?
The board didn't look far for a replacement. They tapped Michael Bender, the board chair, to step in as interim CEO the moment Buchanan was out. By November 2024, after a "comprehensive search," they decided to just make Bender the permanent CEO.
Bender isn't a newbie. He’s been on the Kohl’s board since 2019 and spent years at Walmart and PepsiCo. He also ran Eyemart Express. He’s a retail veteran who knows the guts of the business, but he’s inherited a mess. Kohl's removes Ashley Buchanan as chief executive officer left a vacuum that Bender has had to fill while also dealing with an affordability crisis among middle-income shoppers and the looming threat of new tariffs.
The Vendor Scandal Details
The vendor at the center of the storm was reportedly Incredibrew, a coffee company founded by Chandra Holt. Holt has denied the claims of impropriety, stating she hadn't received compensation from Kohl's for her business, but the board’s investigation was enough to pull the trigger on Buchanan's career at the company.
It’s rare to see a board act this decisively. Usually, these things are handled with quiet resignations. But the "highly unusual terms" of the contracts seemingly left the board with no choice but to protect the company from further legal or financial liability.
Why This Matters for the Future of Retail
If you’re a shopper or an investor, this saga is a cautionary tale about corporate governance. It shows that even in a desperate turnaround situation, the "how" matters as much as the "what." Kohl’s needed a savior, but they couldn't afford a scandal.
The company is currently trying to stabilize. They're closing underperforming stores—about 27 of them recently—and trying to lean into their partnership with Sephora, which has been one of the few bright spots in their quarterly reports.
Actionable Insights for the Road Ahead
If you’re watching the retail space or invested in Kohl's, here is what you should keep an eye on:
- Watch the "Home" and "Gift" Categories: Under Bender, Kohl's is trying to diversify away from just being an apparel destination. If they can't win in fashion, they have to win in convenience.
- Inventory Levels: One of the biggest killers of department stores is "operational sloppiness." Look at whether they are clearing out old stock or if the aisles are staying cluttered.
- Leadership Stability: If Bender stays in the seat for more than 18 months, it’ll be a win. Kohl's desperately needs a period of "boring" leadership where nothing happens except incremental growth.
- The "Sephora Halo": Does the foot traffic from beauty shoppers actually translate into people buying denim and kitchen appliances? That’s the multi-million dollar question.
Kohl's is in a tough spot, no doubt. But by removing Buchanan quickly, they at least showed they still have some standards for how the business is run, even if the business itself is currently treading water.