Kohl's Dismisses CEO Ashley Buchanan Over Policy Violations

Published 4 hours agoKSS

Kohl's Dismisses CEO Ashley Buchanan Over Policy Violations

Kohl's has terminated CEO Ashley Buchanan following an internal probe uncovering policy breaches related to vendor transactions with undisclosed conflicts of interest. Buchanan's removal was immediate, underlining the seriousness of the violations. This action comes amid significant challenges for the retailer, including competitive pressures from online platforms.

In response to the leadership change, Michael Bender, the Chairman of the Board, will temporarily steer the company as the interim CEO while the search for a permanent leader commences. Despite the upheaval, Kohl's anticipates a sales fall of 4.3% to 4% in the first quarter – a better outcome than the 6.34% decline analysts had predicted. Moreover, the company foresees a per-share loss of 24 to 20 cents, outperforming the estimated 52-cent loss.

Interestingly, news of Buchanan's dismissal coincided with a 7% rise in Kohl's stock, although the shares are still down 52% for the year. Reuters reported that the current stock price stands at $7.02, reflecting a small gain from the previous trading session. As Kohl's navigates these turbulent times, the focus remains on stabilizing operations and addressing competitive threats.

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