Kohl’s CEO Ashley Buchanan Fired Over Personal Relationship
THE PRIME NEWS NETWORK – Ashley Buchanan, the CEO of Kohl’s, was fired on May 1 after the company’s board determined he had directed millions of dollars of business to a personal relationship partner, without disclosing the connection. The partner was Chandra Holt, whom Buchanan had been romantically involved with for years.
The scandal rocked the retailer and the industry. The decision to fire Buchanan, who had only been with the company for months, raised questions about what the company knew or should have known about a long-standing personal relationship that blurred professional boundaries.
Lawrence Cunningham, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, said, "While it’s reasonable to expect a board to uncover potential conflicts of interest during the vetting process, when someone actively conceals a relationship, even the best-run process can be compromised."
Kohl’s declined to comment beyond its public statements. Buchanan did not respond to requests for comment.
New details have emerged showing early signs of a relationship between Buchanan and Holt dating back a decade. Both served as executives at Walmart and Sam’s Club, where Holt was a direct report of Buchanan. Employees believed Holt received preferential treatment due to their close relationship.
Buchanan left Walmart to lead Michaels, where Holt was recruited but ultimately not eligible to join due to a non-solicit agreement. After leaving Michaels, Holt was promoted to Walmart.com and later served as CEO of Conn’s HomePlus, a retailer that went bankrupt. She later launched Incredibrew, a company selling coffee pods infused with dietary supplements.
Kohl’s said a board investigation found that Buchanan pushed the retailer to do business with a vendor involving undisclosed conflicts of interest. Holt served as an adviser in a multi-million dollar consulting agreement with Boston Consulting Group, where she was not involved in structuring the project or negotiating contract terms.
BCG stated, "We have strict guidelines for our senior advisers to disclose any conflicts of interest. As a result of this non-disclosure, we have terminated Chandra Holt’s contract."
Holt plans to continue her Incredibrew business.
Reference : https://www.livemint.com/companies/news/fired-kohl-s-ceo-said-to-have-had-history-of-mixing-relationship-with-work-11746316149388.html
