Retail department store giant Kohl’s has dismissed its new CEO for allegedly funneling millions to his lover, the Wall Street Journal reported.
Kohl’s announced in a Thursday press release that former CEO Ashley Buchanan, 51, was given his walking papers “for cause” after less than five months on the job. Buchanan was found to have directed the retailer to engage in millions of dollars worth of “highly unusual” vendor transactions that “involved undisclosed conflicts of interest.”
At the center of it all is one of Buchanan’s alleged lovers, a woman named Chandra Holt, 45, the Journal reported. Holt and Buchanan met several years ago when they were colleagues at Walmart. Buchanan went on to lead arts and crafts chain Michaels before taking over at Kohl’s on Jan. 15, while Holt became founder and CEO of Incredibrew, a coffee drink brand infused with minerals.
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An internal audit found that Buchanan had on at least two occasions entered Kohl’s into a multimillion-dollar consulting agreement with an Incredibrew, a securities filing found. Buchanan did not disclose the relationship as required by the company’s code of ethics and was promptly fired over the breach.
“I’ve known Ashley Buchanan for 10 years, but I have not received any compensation for my Incredibrew business from Kohl’s,” Holt told WSJ.
Buchanan declined to comment to WSJ. He will forfeit all equity awards he was to receive from the company and will be required to reimburse a $2.5 million signing bonus.
Kohl’s board member Michael Bender was named the company’s interim CEO effective immediately. He added that Buchanan’s hiring raises “some questions about the due diligence over his appointment.”
“Ashley has been terminated from his role and he will also no longer serve on the Kohl’s board,” Bender said in an address to the board reviewed by WSJ. “This is not a moment we expected nor the outcome we wanted for the company and our associates, but it is the right decision for us.”
