What: Kohl's terminates CEO Ashley Buchanan over code of conduct violations involving undisclosed business dealings with romantic partner, marking fourth leadership change in three years amid continuing sales decline.

Why it is important: The termination demonstrates how personal and professional boundaries in retail leadership are subject to heightened scrutiny, especially when companies face operational challenges.

Kohl's has terminated CEO Ashley Buchanan following the discovery of code of conduct violations involving undisclosed business dealings with a romantic partner. The board's investigation revealed two specific violations: directing the retailer to conduct business with a vendor founded by his romantic partner "on highly unusual terms" and arranging a multimillion-dollar consulting agreement with Boston Consulting Group where the same person was part of the consulting team. The relationship between Buchanan and Chandra Holt, who currently leads the coffee brand Incredibrew, dates back to their time at Walmart and was previously scrutinised during Buchanan's tenure at Michaels. The termination results in Buchanan forfeiting all equity awards and requiring reimbursement of his $2.5 million signing bonus. Chairman Michael Bender has been appointed interim CEO, becoming the fourth chief executive in three years at the department store chain, which projects a 4% sales decline and another loss in its upcoming quarterly results.

IADS Notes: The abrupt termination of Kohl's CEO Ashley Buchanan reflects broader challenges in retail leadership and governance. According to The Robin Report in December 2023 , Kohl's was already grappling with significant challenges including management turnover and the need for strategic repositioning in the market. Fashion Network's November 2023 coverage  of board transitions, including Michael Bender's appointment as board chair, provided the governance foundation for swift action in this crisis. Retail Dive's March 2024 analysis  highlighted how strategic initiatives like the Sephora partnership were showing promise under previous leadership, generating sales exceeding $1.4 billion in 2023. However, as reported in January 2025 , the company was already implementing significant operational changes, including 27 store closures and e-commerce restructuring, indicating ongoing challenges beyond leadership issues. The timing of Buchanan's termination, amid projected Q1 sales decline of 4% and continued losses, underscores the complex challenges facing retail executives in balancing personal conduct, strategic transformation, and operational performance.

Kohl’s CEO Fired for Funneling Business to Romantic Partner