Kohl’s has abruptly terminated its CEO, Ashley Buchanan, less than five months into his tenure, citing “for cause” dismissal due to “unethical behaviour.” The retailer announced that an external investigation revealed Buchanan “violated company policies by directing the company to engage in vendor transactions that involved undisclosed conflicts of interest,” marking a significant and rare rebuke of a top executive in the corporate world.
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Who is Ashley Buchanan?
On January 15, Buchanan began his journey as Kohl’s CEO with hopes that he would be able to turn around the struggling retail chain. However, the former chief executive of arts and crafts chain Michaels failed to do so in his short time at the top position. During his tenure, the sales dropped to 4.3% as was revealed by the retailer’s preliminary earnings.
Kohl’s added that Buchanan’s termination from the company is “unrelated to the company’s performance, financial reporting, results of operations and did not involve any other company personnel,” as reported by CNN.
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Who is the new CEO of Kohl’s?
Michael Bender, who currently serves as chairman of the Kohl’s board, has been appointed interim CEO following the sudden dismissal of Ashley Buchanan. Bender will lead the company during this transitional period as Kohl’s begins the search for a permanent chief executive. News of the leadership shakeup sparked an initial surge in investor optimism, with shares of Kohl’s (KSS) climbing as much as 6% in early trading before later pulling back.
The leadership change comes at a critical time for the retailer, which has been grappling with ongoing challenges such as shifting consumer habits, fierce competition from online retailers, and the pressures of high inflation. Additionally, declining consumer spending amid broader economic uncertainty has made recovery even more difficult, leaving Kohl’s in a fragile position as it works to stabilise operations and regain market momentum.
Recently, the retail chain also announced that it will be closing down its stores in 27 locations, which means there are now only 1,100 stores left.
