Company says former CEO failed to disclose conflicts of interest while engaging with vendor transactions
Kohl's Corporation has terminated its CEO, Ashley Buchanan, just months after he joined the retailer following findings that he violated company policies.
Buchanan, who joined Kohl's in January, was found to have engaged in vendor transactions without disclosing conflicts of interest.
"An investigation conducted by outside counsel and overseen by the Audit Committee of the Board determined Mr Buchanan violated company policies by directing the company to engage in vendor transactions that involved undisclosed conflicts of interest, which the Board determined to be cause," Kohl's said in a media release.
"Mr Buchanan's termination is unrelated to the company's performance, financial reporting, results of operations, and did not involve any other company personnel."
Buchanan is also no longer a member of the board, according to Kohl's, which has also withdrawn his nomination for election as a director at the company's 2025 Annual Meeting of Shareholders.
No further details were provided in Kohl's statement regarding Buchanan's termination, but reports revealed that he has incurred two violations.
One of the violations was that he had directed the company to conduct business with a vendor that is "founded by an individual with whom Mr Buchanan has a personal relationship on highly unusual terms favourable to the vendor," Bloomberg reported.
The individual, identified in the report as Chandra Holt, was also a member of the Boston Consulting Group (BCG) team that Buchanan urged his company to engage under a multimillion-dollar consulting agreement.
Buchanan did not disclose his connection with Holt as required by Kohl's code of ethics, according to the Bloomberg report.
A spokesperson from BCG told the news outlet that they were "shocked to learn of the relationship" between Holt and Buchanan.
"We have strict guidelines for our senior advisors to disclose any conflicts of interest. As a result of this non-disclosure, we have terminated Chandra Holt's contract," the spokesperson added.
Meanwhile, Kohl's has appointed Michael Bender as interim chief executive officer as it searches for a new permanent CEO.
Bender, who is the chair of Kohl's Board of Directors, is expected to step down from the role while he serves as interim CEO.
"The Board will initiate a search to identify a permanent CEO and retain a leading search firm to assist with this process," Kohl's said.
