CEO dismissed from Kohl's for favoring a personal acquaintance, company alleges.
Rewritten Article:
Scandal Hits Kohl's Top Tier: CEO Ashley Buchanan Booted Over Undisclosed Vendor Relationship
Ashley Buchanan, Kohl's newly appointed CEO, has been given the boot due to an undisclosed personal connection with a vendor involved in a multimillion-dollar deal at his direction, the retail giant revealed in a regulatory filing.
In a surprising move, Buchanan, who only held the position since January, was shown the door for violating company policies by directing the firm toward transactions with potentially undisclosed conflicts of interest, according to the department store's statement.
The Kohl's board of directors opted for "just cause" termination, replacing Buchanan with board director Michael Bender as the interim CEO. The company asserted that the decision was unrelated to Kohl's performance and did not involve any other employees. It's worth noting that Buchanan previously held the same position at crafts retailer Michaels since 2020 and took over Kohl's reins in January.
The incident came to light with the investigation by an outside law firm that discovered Buchanan prioritized business with a vendor founded by an individual with whom he had a personal relationship. The relationship went unmentioned as per company policy, and Buchanan must relinquish all equity awards and bonuses earned with his employment as well as reimburse Kohl's on a pro-rated basis for a $2.5 million signing bonus.
Kohl's declined to reveal the identity of the consulting agreement partner, but The Wall Street Journal, which reported Buchanan's termination first, suggested it might be Boston Consulting Group (BCG), where Buchanan's romantic partner, Chandra Holt, served as an adviser. The Journal's report cited unnamed sources familiar with the matter.
Neither Buchanan nor Holt responded to requests for comment via phone or email at the time of publication.
Boston Consulting Group, in a statement to NBC News, expressed shock over the relationship between Buchanan and Holt. Maintaining strict guidelines for senior advisors to disclose conflicts of interest, the company terminated Holt's contract for nondisclosure.
The Boston Consulting Group clarified that, while Holt was recognized as an industry expert, she worked on a part-time basis and was compensated by the hour. She was not involved in project structuring, contract negotiations, or any leadership roles in the project, according to the group's statement.
- Despite the brief tenure, Ashley Buchanan's leadership at Kohl's was terminated due to a nondisclosed personal relationship with a vendor involved in a multi-million-dollar deal.
- The termination of Ashley Buchanan from Kohl's was a result of directing the firm toward transactions with potential undisclosed conflicts of interest.
- The consulting agreement partner of Ashley Buchanan, allegedly Boston Consulting Group (BCG), expressed shock over the relationship and terminated the contract of Chandra Holt due to nondisclosure.
- In his previous position at Michaels since 2020, Ashley Buchanan's employment will be affected by the revelation of the undisclosed personal relationship, and he may be required to relinquish awards, bonuses, and reimburse for the signing bonus.
