Kohl’s CEO Ashley Buchanan Fired Over Undisclosed Relationship and Vendor Conflict

Ashley Buchanan, Kohl’s CEO, was sacked this week for failing to disclose a personal relationship with a vendor involved in a multimillion-dollar deal he directed on behalf of the company. In a regulatory filing with the Securities and Exchange Commission (SEC), the department store chain stated its decision based on a clear violation of company policies. Buchanan, who took over the CEO role in January, had only a few months of experience. According to Kohl’s, the executive no longer with the company instructed the retailer to sign a vendor agreement encompassing “highly unusual terms favorable to the vendor,” which was co-founded by someone with whom Buchanan had a personal relationship.

The Wall Street Journal later identified that person as Chandra Holt, a senior advisor at BCG and Buchanan’s romantic partner. According to the investigation conducted by an outside law firm, Buchanan created an undisclosed conflict of interest when he orchestrated the deal without informing the company of his relationship with Holt. Despite being connected to the project consulting team, the report concluded that Holt was not directly involved in contract negotiations or decision-making, as stated by BCG.

BCG said it was shocked to learn about the undisclosed relationship and promptly terminated Holt’s contract for violating its conflict-of-interest guidelines.

“She was not involved in structuring the project or negotiating any contract terms and was not expected to lead any part of the project,” the firm said in a statement.

Kohl’s stressed that Buchanan’s termination was unrelated to the company’s financial performance and did not affect other employees. Buchanan’s consequences are significant. The company stated that he will forfeit all equity awards and bonuses received during his short tenure, including a pro-rated repayment of a $2.5 million signing bonus.

Director Michael Bender has been appointed acting CEO by the board while the company searches for a permanent replacement. Buchanan previously served as CEO of Michaels, the arts and crafts retail chain, from 2020 until he joined Kohl’s earlier this year. Neither Buchanan nor Holt has publicly responded to the allegations or requests for comment. The scandal is a significant and unexpected leadership transformation for the Wisconsin-based retailer, which has been striving to recover momentum in a challenging retail environment. The company has yet to provide more information about the consulting agreement or the scope of the vendor relationship.