Ashley Buchanan Terminated As Kohl’s CEO After Investigation Reveals Violation Of Company Policies

Department store chain Kohl’s Corporation (KSS) has terminated CEO Ashley Buchanan after an investigation conducted by outside counsel and overseen by the Board’s Audit Committee found that he violated company policies.

Kohl’s said that Buchanan directed the company to engage in vendor transactions that involved undisclosed conflicts of interest.

Kohl’s also clarified that Buchanan's termination is unrelated to the company's performance, financial reporting, and results of operations. The incident also did not involve any other company personnel.

The firm also highlighted that Buchanan is no longer a member of the Board, and the company has withdrawn his nomination for election as a Director at the 2025 annual meeting of shareholders.

The company has appointed Michael Bender as interim CEO, effective immediately. Bender has served as a Director of the Board since July 2019.

“Bender will remain on the Board but will step down from certain Board committees on which he serves, as well as his role as Chair, while he serves as Interim CEO. The Board plans to announce a new Chair in due course,” the firm stated.

Meanwhile, Kohl’s stated that for the first quarter (Q1) of 2025, it expects a 4% to 4.3% decline in comparable sales. The company expects operating income to be in the range of $40 million to $45 million and sees diluted earnings per share (EPS) loss in the range of $0.20 to $0.24.

Kohl’s is scheduled to announce its Q1 earnings before the opening bell on May 29.

Following the announcement, Kohl’s shares jumped over 6% on Thursday. The stock has lost nearly half its value this year and more than 69% over the past 12 months.

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