By MICHELLE CHAPMAN and ANNE D’INNOCENZIO
Kohl’s has terminated CEO Ashley Buchanan, who just started at the department store chain’s helm in January.
An investigation determined that he directed the retailer to engage in vendor transactions that involved undisclosed conflicts of interest, the company said.
Kohl’s named Chairman Michael Bender as interim CEO, effective immediately.
The retial company said Thursday that Buchanan’s firing is unrelated to its performance, financial reporting, results of operations and did not involve any of its other employees.
Kohl’s will conduct a search for a permanent CEO and said it will name a new chair in due course. The company couldn’t be immediately be reached for comments.
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Buchanan, 51, took over the job on Jan. 15. He had previously been the CEO of crafts chain Michaels, and also had executive positions with Walmart. Fortune said his compensation package from Kohl’s totaled $20 million, more thna double that of his predecessor, Tom Kingsbury.
The firing comes at a time when Kohl’s, which operates about 1,200 stores across the country, is wrestling with sluggish sales. Its middle income shoppers have pulled back on discretionary spending in the face of still-high prices for necessities. Like other department stores, it’s also faced stiff competition from Walmart and Amazon, which have been improving their fashion offerings at affordable prices. And like other retailers, it is facing uncertainty surrounding President Donald Trump’s expansive tariffs.
Shares of the company, based in Menomonee Falls, Wisconsin, rose 6.4% in morning trading.