Trusted U.S. Department Store Gets Good News After CEO Ouster

Kohl’s is back in the headlines, and this time, investors are cheering. On Thursday, the retailer abruptly fired CEO Ashley Buchanan “for cause,” citing policy violations tied to a personal relationship and questionable business dealings. The fallout? A nearly 9% spike in Kohl’s stock price, Investopedia reported.

In an SEC filing, the company said Buchanan allegedly orchestrated a multi-million-dollar agreement with a consulting firm linked to a personal contact. That contact, according to The Wall Street Journal, was a woman Buchanan had a romantic relationship with. He failed to disclose the connection, and an independent investigation found the terms of the deal “highly unusual” and “favorable” to the vendor.

Buchanan had only recently taken over from former CEO Tom Kingsbury, who left after less than two years at the helm. His ouster is the latest chapter in Kohl’s ongoing leadership shake-up as it struggles to recover from years of declining customer loyalty and strategic missteps.

Related: Kohl’s Fired Its CEO for ‘Inappropriate’ Business Decision

Despite the abrupt leadership change, Kohl’s stressed that the termination wasn’t related to financial performance or reporting. Still, the board moved swiftly, naming former board chair Michael Bender as interim CEO while a national search begins for a permanent replacement.

Bender struck an optimistic tone in a press release, citing the company’s nationwide footprint and customer base of over 60 million. “We will continue to build on this foundation,” he said, “as we enhance the value we deliver and set the stage for meaningful operational and financial progress.”

Kohl’s shares had been down more than 50% year-to-date before Thursday’s jump. The board’s decisive action and renewed focus on value could be the start of a turnaround—or at least a pause in the retailer’s long slide.

source https://www.mensjournal.com/news/kohls-good-news-after-ceo-ouster