Kohl's has officially dismissed its CEO, Ashley Buchanan, after an investigation revealed that he oversaw vendor transactions that posed undisclosed conflicts of interest. The company's board has appointed Michael Bender, the current Chairman, as the interim CEO effective immediately. Following this change, Bender will relinquish his roles on the audit, compensation, and governance committees as outlined in a regulatory filing. Buchanan, who previously led the arts and crafts retailer Michaels, took the helm at Kohl's on January 15, making his tenure notably brief at just under four months. His departure marks the third CEO transition for Kohl's in as many years, a period during which the retailer has faced challenges in revitalizing its sales figures. The retailer clarified that Buchanan's termination was not linked to the company's financial performance or reporting issues, nor did it involve any other employees. The investigation, led by external legal counsel and monitored by the audit committee, found that Buchanan directed Kohl's to engage in business dealings with a vendor tied to an individual with whom he had a personal connection. These dealings included highly favorable contract terms for the vendor, as well as a multimillion-dollar consulting agreement with the same individual, which he failed to disclose as required by Kohl's ethical standards. As part of the termination agreement, Buchanan will forfeit all equity awards granted to him by the company, including those acquired during his recruitment. Additionally, he is obligated to reimburse Kohl's a prorated amount of his $2.5 million signing incentive. In light of these developments, the board has opted to withdraw Buchanan's nomination for election as a director at the upcoming annual shareholders' meeting, scheduled for May 14. He succeeded Tom Kingsbury, who served as interim CEO in late 2022 and transitioned to a permanent role in February 2023. Kingsbury will continue to serve on Kohl's board as an advisor until his retirement next month. Kohl's, which operates approximately 1,600 stores nationwide, is currently grappling with sluggish sales. The company has noted that its middle-income customer base has been reducing discretionary purchases amid rising costs for essential goods. Kohl's also faces increasing competition from retail giants such as Walmart and Amazon, which have enhanced their fashion offerings at competitive price points. The retailer is navigating uncertainties associated with President Donald Trump's broad tariffs, which have created a challenging environment for retailers. On Thursday, Kohl's provided preliminary insights into its sales and profits for the current quarter, indicating continued weakness but still projecting results that may exceed Wall Street expectations. The company anticipates a decline in comparable sales--those derived from established stores and online platforms--ranging from 4.3% to 4%, along with a projected loss of 24 to 20 cents per share for the fiscal first quarter. Analysts had predicted a loss of 54 cents per share and a 6.4% decline in comparable sales, according to FactSet. Final results for Kohl's first fiscal quarter are set to be released on May 29. Following the news of Buchanan's termination, the company's shares saw a nearly 9% increase in late morning trading, reflecting a possible positive market reaction amidst ongoing operational challenges.