Kohl’s Corp.’s firing of CEO Ashley Buchanan just over four months into the job has left analysts and observers stunned. The reason behind his dismissal is a personal relationship with Chandra Holt, whom he met at Walmart and began an affair that led to his divorce.
Many are pointing fingers at Kohl’s board of directors for its role in putting the company in this position. Analysts are now wondering if the board is properly serving shareholders and customers.
Brittain Ladd, a strategy and supply chain consultant, described the board as “woefully incompetent” and said they failed to do their due diligence on Buchanan. He also warned that the relationship between Buchanan and Holt was an “open secret”.
Margaret Hughes-Morgan, a Marquette University associate professor of management, echoed Ladd’s sentiments, saying the board should have looked into Buchanan’s past before hiring him.
Kohl’s stock ended the week up almost 8% despite the surprise firing. However, analysts are concerned that the company may struggle to find the right CEO.
David Swartz, senior equity analyst at Morningstar, believes Kohl’s shouldn’t rush in choosing its next CEO and is interested in what will happen with Chief Financial Officer Jill Timm.
The company has a shareholder meeting and quarterly earnings report scheduled for May. Analysts are hoping that the new leadership will reassure investors that the company is moving forward despite the recent changes.
Swartz also believes Kohl’s still has a place in America’s retail landscape, but perhaps at a different scale. The question now is whether the company can find the right CEO to turn things around.
Source: https://eu.jsonline.com/story/money/business/2025/05/02/this-is-stunning-analysts-respond-to-kohls-corp-firing-ceo/83416142007