The CEO of American department store chain Kohl’s, which stocks Sephora products, has been fired over a violation of company policies.
Ashley Buchanan's role was “terminated” after an investigation revealed he had directed the company to engage in "vendor transactions that involved undisclosed conflicts of interest”.
The investigation was conducted by an “outside counsel” and overseen by the Audit Committee of Kohl’s board.
Michael Bender has been named Interim CEO, effective immediately, and has served as a Director of the Kohl’s board since July 2019 and as Chair since May 2024.
Kohl’s has initiated a search process to find a permanent CEO.
“The board has full confidence in Michael to serve our customers and associates as Interim CEO and deliver on our commitments to our shareholders,” said John Schlifske, Chair of the Nominating and ESG Committee.
“We look forward to continuing to work closely with Michael as Kohl’s remains focused on operational excellence, simplification and efficiency to improve long-term financial health and profitability.”
Kohl’s stated that Buchanan's termination is unrelated to the company's performance, financial reporting, results of operations, and did not involve any other company personnel.
"I am honoured to assume the role of Interim CEO at this important time for the company,” added Bender.
“Working with our talented leadership team, board and thousands of associates, I am committed to continuing the execution of our strategic framework to grow shareholder value.”
The news follows Kohl’s slashing its corporate workforce by 10% in February 2025.
The company claimed the majority of cuts affected open positions and current associates, and that impacted staff were provided with “competitive” severance packages and support.
Kohl’s has also shuttered 27 of its “underperforming” stores.
"The real estate closures and the corporate workforce reduction are both actions to support our commitments to increase efficiencies and improve profitability in the business for the long-term benefit of our associates and customers," Kohl’s said in a statement announcing the closures and job cuts in February 2025.
The store closures and job cuts followed a lacklustre third quarter of trading in 2024, which saw sales slump by 8.8% to US$3.5bn.
Cosmetics Business has contacted Kohl’s for a comment.
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