Ashley Buchanan has been ousted as Kohl’s CEO in less than five months due to a vendor dispute scandal — read the full story on the leadership crisis and what’s next for the retailer.
What Happened and Why it Matters
Ashley Buchanan, who took over as Kohl’s CEO in January 2025, was abruptly fired after less than five months on the job. The company cited “unethical behavior” as the reason behind her dismissal — a decision that stunned the retail world and sparked a wave of speculation about Kohl’s internal stability.
She was fired after an independent investigation revealed that Buchanan had directed Kohl’s to make vendor transactions involving undisclosed conflicts of interest. Although the dismissal has no connection to the company’s financial performance, it has added to the turmoil already raging around the struggling department store chain.
CEO Removed Due to Unethical Vendor Behavior
Kohl’s board said Buchanan’s firing was done “for cause,” indicating a serious breach of trust. The investigation, conducted by outside counsel and overseen by the board’s audit committee, concluded that Buchanan violated company policy by directing vendor relationships that served hidden interests.
While the specifics of the vendor conflicts have not been disclosed, the situation was so severe as to require immediate dismissal. The board emphasized that no other employees were involved, and the misconduct did not impact financial reporting or operational performance.
Leadership Instability at Kohl’s
This is the third CEO departure for Kohl’s in less than three years, a trend that highlights deeper issues within the company’s leadership ranks. Before Buchanan, Tom Kingsbury served as CEO from early 2023 but stepped down a year later. Kingsbury was brought in to stabilize the company following Michelle Gass’ exit in late 2022.
Each change was intended to revive the brand, yet none succeeded in halting its sales decline. Following Buchanan’s ouster, Michael Bender — currently the chairman of the board — has been named interim CEO while a search for a permanent replacement is underway.
Slumping Sales and Store Closures Add to Pressure
Even before Buchanan’s exit, Kohl’s was struggling with weak sales and changes in consumer habits. The company recently forecast a 4% to 4.3% decline in comparable sales for Q1 and announced 27 store closures, reducing its number to about 1,100 nationwide.
The company is under pressure from online competitors and a move away from department stores. Economic uncertainty and a decrease in consumer spending have made matters even worse.
Industry Experts React to Kohl’s Woes
Retail experts say Buchanan’s ouster could have long-term implications for Kohl’s. “This is a serious breach of governance,” said industry analyst Maria Edwards. “Investor and customer confidence may be undermined by leadership instability and ongoing operational challenges.”
The controversy could also invite regulatory scrutiny, especially if the vendor deals are tied to widespread compliance failures. Market reactions have been mixed — while shares initially rose following the announcement, concerns about future leadership caused them to drop in after-hours trading.
What’s Next for Kohl’s?
Kohl’s faces a tough road ahead. The board must now act swiftly to restore trust both inside and outside the company. Rebuilding executive leadership, stabilizing operations and maintaining investor confidence will be top priorities in the months ahead.
While the company searches for its fourth CEO in three years, analysts warn that continued turmoil could threaten Kohl’s long-term viability in a highly competitive retail environment.
Conclusion: A cautionary tale in corporate governance
The abrupt dismissal of Ashley Buchanan as CEO of Kohl’s underscores how important ethical standards and transparency are in corporate leadership. With her exit due to vendor conflicts, Kohl’s must now confront not only its business challenges – but also a serious credibility crisis. Whether the company can turn things around will largely depend on who leads it next, and how they restore order in the wake of yet another executive change.
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