Kohl's CEO fired over secret business deal tied to romantic partner

Kohl's chief executive Ashley Buchanan is dismissed for violating 'code of conduct' involving multimillion-dollar deal with consultancy connected to former colleague Chandra Holt

US retail chain Kohl’s has fired its chief executive Ashley Buchanan after revelations about his role in initiating a ‘highly unusual’ business arrangement involving a woman with whom he had a ‘romantic relationship’. 

According to reports, Buchanan met the woman, Chandra Holt, when they both worked at Walmart several years ago. Thereafter, Buchanan joined craft chain Michaels and took over as Kohl’s CEO in November.

Details of the controversy and Buchanan dismissal

An investigation by Kohl’s board found that Buchanan had made secret deals with a vendor with whom he had a personal relationship, violating the code of conduct of the company. Kohl’s said this in a regulatory filing without naming the vendor. It added that Buchanan directed the retailer to conduct business with this vendor, causing the company to enter into a multimillion-dollar consulting agreement. The vendor was a part of the consulting team. 

 

 

Kohl’s code of ethics requires the disclosure of any such personal relationships, which the former CEO failed to do. The board determined that his conduct in both cases constituted ‘cause for termination.’ Now, Buchanan will forfeit all equity awards from the company and is required to reimburse the company on a pro rata basis a signing bonus worth $2.5 million.

Who is Chandra Holt?

Chandra Holt, 44, is a retail veteran and has held many leadership positions at Walmart, Conn’s, and Bed Bath & Beyond. Her career spans ecommerce innovation and merchandising strategy. She holds an MBA from the University of Minnesota. Now, she works as a consultant and founder of Incredibrew, a coffee brand. 

Buchanan’s relationship with Holt

Ashley Buchanan and Chandra Holt, two retail veterans, have known each other for years. They both rose through the ranks at Walmart and left the company around the same time for other positions in different firms. Buchanan left in early 2020 and became CEO of Michaels, while Holt left in 2021 to become CEO of Conn’s HomePlus, and later Bed Bath & Beyond.

Chandra Holt’s reaction to the controversy

Holt denied any wrongdoing or receiving any favours from Buchanan. “I’ve known Ashley Buchanan for 10 years, but I have not received any compensation for my Incredibrew business from Kohl’s,” she told The Wall Street Journal. 

Kohl’s assures workers, appoints interim CEO

On May 1, Kohl’s appointed Chairman Michael Bender as its interim CEO. He becomes the fourth CEO in three years at the department-store chain, which has been struggling with slumping sales.

 

Kohl’s executives also reassured employees about the abrupt change in leadership. However, no details were provided beyond the company’s public statements.