Kohl’s Fires CEO Ashley Buchanan Over Personal Relationship With Company Vendor
Ashley Buchanan’s tenure as CEO of department store chain Kohl’s was short-lived.
Buchanan, who became chief executive of Kohl’s Jan. 15, was fired Wednesday (April 30) after an investigation determined he violated company policy by directing Kohl’s to enter into a multimillion-dollar consulting contract with a vendor despite “undisclosed conflicts of interest,” per a regulatory filing with the Securities and Exchange Commission.
Buchanan had a personal relationship with that vendor, and the agreement included “highly unusual terms favorable to the vendor,” the filing said.
While the company did not characterize the nature of the ex-CEO’s relationship with the vendor, a Thursday (May 1) report by The Wall Street Journal (WSJ) identified her as Chandra Holt and said Buchanan has had a romantic relationship with her.
The two met when they were both working for Walmart years ago, the report said. Buchanan went on to serve as CEO of crafts retailer Michaels before being hired by Kohl’s. Holt served as CEO of Bed Bath & Beyond and is now a consultant and the founder of coffee brand Incredibrew.
“I’ve known Ashley Buchanan for 10 years, but I have not received any compensation for my Incredibrew business from Kohl’s,” Holt told the WSJ, per the report.
Buchanan was hired as Kohl’s CEO in November, replacing Tom Kingsbury, who retired in January.
His departure places more pressure on the chain, which in March forecast a difficult year ahead amid an ongoing turnaround project. Kohl’s released quarterly earnings at the time that projected a 5% to 7% drop in revenue for the year.
Speaking to analysts during an earnings call, Buchanan said Kohl’s has gone astray in recent years by moving away from core offerings like jewelry and its proprietary brands while focusing on new categories.
“A lot of the issues were probably self-inflicted over many years of decisions,” he said. “We have a very loyal customer. When I toured stores, all I heard was how much they love Kohl’s. And what I realized is we’re kind of making it hard for them to love us.”
Replacing Buchanan as Kohl’s new interim CEO will be Michael Bender, chair of the retailer’s board since last year, the past CEO of Eyemart Express, and a veteran of companies such as Walmart and PepsiCo.
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