Kohl's CEO fired for startling reason

The news came as a shock.

May 1, 2025 - 16:33

Brick-and-mortar stores have had a tough run since the pandemic.

Back in 2020, stay-at-home orders forced consumers out of stores, causing them to change the way they did their shopping. Retailers with robust shipping models were able to easily adapt, but those that relied on in-person shoppers felt the pain almost immediately.

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Once stores opened back up, supply chain issues took hold. Retailers struggled to fill their shelves and adjustments to inventory had to be made

Inflation was the next major challenge retailers had to grapple with. Since 2021, costs have been elevated across the board.

That's forced consumers to change their spending priorities. And as a result, many retailers have seen sales decline.

Not surprisingly, there have been a notable number of retail store closures and bankruptcies in recent years. And even department stores, which have long been resilient, have felt the pain.

Kohl's CEO fired for shocking reason.
Image source: Justin Sullivan/Getty Images

Kohl's has had a tough run

Although many retailers have struggled these past five years, Kohl's has had a particularly rough time.

Unlike other department stores, which are commonly situated within malls as anchors, Kohl's tends to operate standalone stores in strip malls. Whether that works to its benefit is questionable, though.

Department stores in malls benefit from steady flows of shoppers. Kohl's tends to be more reliant on shoppers who actually seek it out as a destination.

Granted, it can be argued that this strategy could be helpful to Kohl’s, as it helps eliminate competition. But it’s clear that if anything, Kohl’s had struggled to get people in the door.

Kohl's has tried to take steps to improve foot traffic at its stores. A few years back, it made the decision to become a hub for Amazon returns, in the hopes of drawing in consumers.

That tactic did not seem to do the trick, though. Earlier this year, Kohl's announced it would stop accepting Amazon returns at select locations.

Kohl's also announced in January that it would be shuttering 27 underperforming locations. That news came in conjunction with a decision to slash a large chunk of the company's corporate workforce.

In March, Kohl's announced that fourth-quarter sales fell more than 9%, while net income declined by an astounding 74%. And the company’s outlook for the upcoming quarter is far from rosy.

Kohl’s CEO fired suddenly over conflicts of interest

Kohl’s CEO Ashley Buchanan, who spent less than five months in the position, has been terminated for unethical behavior. Board Chair Michael Bender will serve as interim CEO while the company looks for a more permanent replacement.

Buchanan's dismissal was "for cause," the company said. It followed an investigation by outside counsel.

Buchanan was said to have “violated company policies by directing the company to engage in vendor transactions that involved undisclosed conflicts of interest,” according to a press release.

However, Kohl's was quick to note that Buchanan's dismissal was not related to the company's recent performance.

Kohl's shares actually rose following the news.

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Buchanan, meanwhile, will have to forfeit all his equity awards and repay a pro-rata portion of his $2.5 million signing bonus from when he became CEO in January.

At a time when Kohl's is on questionable financial ground, a leadership shakeup could be good news or bad. Only time will tell.