Kohl’s CEO, Ashley Buchanan, was fired on Thursday after the retailer discovered he had entered into business deals with someone with whom he had a “personal relationship.”
Buchanan was let go after only four months on the job—he had just started in January. He was previously the CEO of the craft store, Michaels.
After an investigation, the Kohl’s board says that Buchanan led the company to agree to a multimillion-dollar consulting deal with a person with whom the Wall Street Journal reports he was romantically involved. In an SEC filing, the company said it had “found that Mr. 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.”
This “caused the Company to enter into a multi-million dollar consulting agreement” with the individual, it continues.
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“An investigation conducted by outside counsel and overseen by the Audit Committee of the Board determined Mr. Buchanan violated company policies by directing the Company to engage in vendor transactions that involved undisclosed conflicts of interest,” Kohl’s said.
The WSJ report names former Bed Bath & Beyond CEO Chandra Holt, now the founder of coffee company Incredibrew, as the other person involved in the deal.
Holt denied the claims to the WSJ.
“I’ve known Ashley Buchanan for 10 years, but I have not received any compensation for my Incredibrew business from Kohl’s,” Holt told the outlet.
Kohl’s has closed 27 underperforming stores since January, per Axios. The company still has over 1,120 stores.
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The Kohl’s board named Michael Bender, the current Director of the Board, as Interim CEO, effective immediately.
(Source)