Kohl’s CEO Fired After Shocking Ethics Scandal: What Really Happened?

May 2, 2025 — In a dramatic leadership shake-up, Kohl’s Corporation has dismissed CEO Ashley Buchanan just under five months after his appointment, citing serious ethical violations involving undisclosed vendor conflicts.

According to a statement from the company, Buchanan’s termination was “for cause,” following an independent legal investigation that confirmed he instructed Kohl’s to engage in vendor transactions where conflicts of interest were not disclosed. The company emphasized that the issue did not involve financial misreporting or other staff members.

Buchanan, who previously served as CEO of arts and crafts chain Michaels, took over as Kohl’s chief executive on January 15, 2025, tasked with turning around the embattled department store. However, his short tenure saw a 4.3% decline in sales, according to preliminary results, failing to spark the hoped-for recovery.

Effective immediately, Michael Bender, chairman of the Kohl’s board, will assume the role of interim CEO while the company searches for a permanent replacement. The announcement triggered a surge in investor confidence, with Kohl’s (NYSE: KSS) stock jumping as much as 8% in trading.

Industry expert Neil Saunders from GlobalData Retail remarked that the scandal is a “distraction the company can ill afford.” He added, “Though unrelated to performance, the incident paints a picture of instability and raises concerns about the due diligence process behind Buchanan’s hiring.”

Kohl’s has been under pressure for several years as the retail sector undergoes seismic shifts. The company faces fierce competition from e-commerce platforms, rising costs due to inflation, and increasingly cautious consumer spending amid economic uncertainty.

In addition to the leadership crisis, Kohl’s recently announced it would shutter 27 underperforming stores, reducing its nationwide footprint to about 1,100 locations. The closures are part of a larger effort to streamline operations and reorient the company’s business strategy.

As the retailer navigates these challenges, Buchanan’s abrupt departure underscores the critical importance of ethical leadership and transparent governance in rebuilding trust with stakeholders and steering the company forward.