Kohl’s Corp. Fires CEO After Investigation
Kohl’s Corp. fired its chief executive officer after the board found he directed the company to do millions of dollars of business with someone he had a personal relationship with on “highly unusual terms.”
The company said it is starting a search to find a permanent replacement after the departure of Ashley Buchanan and that Chairman Michael Bender would serve as interim CEO, according to a statement.
Background and Investigation
Buchanan joined the company earlier this year after holding the position of CEO at Irving-based Michaels. The latest on retail openings, closings and trends in D-FW can be found in our related article: Walmart’s D-FW makeover: 3 stores to be updated and 3 new stores are on the way.
Buchanan’s termination follows an outside investigation overseen by the board’s audit committee. The probe determined Buchanan “had directed that the company conduct business with a vendor founded by an individual with whom Mr. Buchanan has a personal relationship on highly unusual terms favorable to the vendor.”
Findings of the Investigation
The board found Buchanan pushed the company to enter into a multi-million dollar consulting agreement wherein the same individual was a part of the consulting team. It also found that in neither case did Buchanan disclose this relationship as required under company’s code of ethics.
The abrupt change adds more pressure to a retail business that’s struggled for years, posting 12 straight quarters of revenue declines.
Impact on the Company
Kohl’s shares rose as much as 8.2% in New York trading Thursday. This sudden change in leadership may have a significant impact on the company’s future direction and strategy.
Other Retail News
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Conclusion
In conclusion, the sudden firing of Kohl’s CEO Ashley Buchanan has sent shockwaves through the retail industry. The investigation findings and the company’s struggles in recent years will likely have a significant impact on the company’s future direction. As the company searches for a new CEO, it will be interesting to see how they navigate these challenges and work to turn the business around.
Frequently Asked Questions
Here are some frequently asked questions about the situation:
Q: Why was Ashley Buchanan fired as CEO of Kohl’s? A: Buchanan was fired after an investigation found that he had directed the company to do business with a vendor founded by someone he had a personal relationship with on “highly unusual terms”.
Q: Who will serve as interim CEO of Kohl’s? A: Chairman Michael Bender will serve as interim CEO until a permanent replacement is found.
Q: How has Kohl’s performed financially in recent years? A: Kohl’s has struggled financially, posting 12 straight quarters of revenue declines.
Q: What other retail news is happening in the D-FW area? A: There have been several developments in the retail sector in the D-FW area, including the banning of the sale of dogs and cats from pet stores in Dallas and the expansion of H-E-B into the North Texas market.
