Kohl’s has found itself in the midst of a scandal that has rocked the retail world.
The company’s CEO, Ashley Buchanan, was abruptly fired just 100 days into his tenure, following the discovery of his personal relationship with a vendor.
This revelation, which surfaced in a LinkedIn video, has raised serious concerns about conflicts of interest and ethical breaches at the highest levels of the company.
Buchanan’s LinkedIn Slip-Up Leads to Public Fallout
The drama began when Buchanan, a former Walmart executive, posted a video on LinkedIn that showcased his personal connection to Chandra Holt, the woman at the center of the controversy.
In the video, Holt, who is the founder of the coffee startup IncrediBrew, promoted her company’s collagen-infused coffee.
Clad in a white turtleneck and sitting in front of a cozy electric fireplace, Holt extolled the benefits of her product, which she claimed helps with hair, skin, nails, bones, and joints.
Though seemingly innocent, this video has now become a key piece of evidence in the fallout.
The fact that Buchanan shared it on his professional profile, and the ongoing display of their personal connection, only added fuel to the fire.
The Conflict of Interest That Shook Kohl’s
The real issue arose when it was revealed that Buchanan had pushed for Kohl’s to enter into two major business deals that directly benefited Holt.
One of these agreements was with IncrediBrew, Holt’s fledgling coffee company, which had only been in operation for five months before Buchanan secured a deal to sell the product at Kohl’s stores.
The second was a consulting deal with Boston Consulting Group (BCG), a firm that had Holt on its advisory team.
Buchanan failed to disclose his romantic relationship with Holt, and this lack of transparency ultimately led to his downfall.
According to an SEC filing, his actions breached Kohl’s code of ethics and raised serious questions about corporate governance.
The Scandal and Buchanan’s Firing
The turning point came when Buchanan signed off on Kohl’s annual report without revealing his connection to Holt.
Legal experts argue that this oversight went beyond poor optics, and instead could be classified as a serious violation of corporate ethics.
Mitchell Epner, a former federal prosecutor, noted that firing an executive “for cause” often implies serious misconduct, possibly even criminal behavior.
As details emerged, it became clear that Buchanan’s professional and personal ties to Holt went back years, having first met while working at Walmart.
The pair had reportedly shared a home in a high-end Dallas golf community, further complicating the situation.
The Fallout for Holt and BCG
The scandal didn’t just affect Buchanan. Chandra Holt, who had enjoyed a promising career in retail and consulting, was also terminated from her role at BCG the same day.
The firm stated that it was “shocked” by the undisclosed relationship and had no choice but to end her contract.
While Kohl’s has remained silent on whether Holt’s involvement was the final straw, the actions speak for themselves.
Buchanan was not only dismissed but also forced to repay a significant portion of his signing bonus and lost millions in stock options.
This was a stark reminder of how deeply personal actions can affect corporate careers.
Kohl’s Struggles Amid Leadership Turmoil
Buchanan’s firing marks the third leadership change at Kohl’s in just three years, a period during which the company has faced significant challenges.
Once a dominant force in retail, Kohl’s has struggled with declining sales, poor strategic decisions, and growing competition from e-commerce giants.
Despite the scandal, Kohl’s stock experienced a bump, with shares rising nearly 9% after Buchanan’s dismissal.
The company appointed Michael Bender, a seasoned executive with experience at Walmart, PepsiCo, and Bath & Body Works, as interim CEO, signaling that the company hoped to steer through the storm.
However, analysts are skeptical about Kohl’s ability to bounce back fully.
With sluggish sales and growing uncertainty over trade tariffs, the retail giant is attempting to reinvent itself by trimming underperforming stores and forming new partnerships.
Yet, some argue that Kohl’s may have lost touch with its core customer base, which has traditionally relied on affordable shopping experiences.
The controversy surrounding Buchanan’s departure has only added to the chaos at Kohl’s, and the company’s future now hangs in the balance as it tries to rebuild trust with its customers and investors.
A Cautionary Tale of Corporate Ethics and Transparency
At the heart of this scandal is the issue of transparency.
Buchanan’s lack of disclosure about his relationship with Holt, both personally and professionally, ultimately led to his undoing.
This incident serves as a cautionary tale for other corporate leaders, highlighting the importance of ethical conduct and openness in business dealings.
As for Buchanan, his career has taken a dramatic turn, and it’s unclear what lies ahead for him.
With his LinkedIn profile removed and his reputation in tatters, the former CEO of Kohl’s will likely face an uphill battle to regain his standing in the business world.
