According to the report, Cole canned the newly hired CEO after investigating that he had cut “very unusual” business deals with a woman he was a romantic partner.
Ashley Buchanan was hired to lead the department store chain just four months ago – instructing Coles to “participate in vendor transactions with private conflicts of interest,” the company said Thursday.
Specifically, the conflict had something to do with Buchanan with former Walmart colleague Chandra Holt. Wall Street Journal Report.
According to the company Submit It wasn't specifically named Holt, and the vendor signed a multi-million dollar consulting agreement with Kohl on very favorable terms.
According to her LinkedIn profile, Holt is the founder and CEO of IncroSibrew, a coffee brand that is infused with vitamins and minerals.
“I've known Ashley Buchanan for 10 years and haven't received compensation from Coles for my incredible business,” Holt told the Journal.
This post was contacted Buchanan for comments.
After increasing the ranks of Walmart, Buchanan and Holt went on the same time as they took on other positions at the Texas-based retailer. Buchanan left in early 2020 and became CEO of Michaels. Holt left in 2021 and became CEO of Conn's HomePlus.
In 2023, Holt became CEO of Beyond Inc., which owns Overstock.com and Bed Bath & Beyond, leading the company for a year.
Kohl's appointed board member Michael Bender will soon take effect as interim CEO. The vendor served as director since July 2019 and was appointed chairman in May 2024.
During all hand meetings on Thursday, the vendor and other call executives “trying to reassure staff” but did not provide additional details or ask questions, the journal reported.
“This is not the moment we expected, nor the outcome we wanted from our company and our peers, but that's the right decision for us,” the vendor said.
Kohl's shares rose 7.6% to $7.21 on the news.
Cole's Audit Committee oversaw an investigation that found Buchanan had not revealed any inappropriate vendor relationships.
Buchanan will be required to confiscate all stock awards from the company and, according to a securities application, will be resupplied with awards that will supplement the signature awards worth $2.5 million.
Cole said Buchanan's termination has nothing to do with the company's financial performance. The company has released preliminary first quarter results showing comparable sales fall between 4% and 4.3%.
The Menomony Falls, Wisconsin-based retailer has had three CEOs over the past three years as it has struggled to stop sales declines in the past three years.
Buchanan followed Tom Kingsbury. Tom Kingsbury continued on work less than two years after following Michelle Gus, who left Coles for Levy.
