**Kohl’s Considers New Search Firm After CEO Dismissal**
Kohl’s Corp. is reevaluating its relationship with the search firm that assisted in hiring its recently dismissed CEO, Ashley Buchanan. The retailer is contemplating whether to return to Heidrick & Struggles International Inc., the firm that facilitated Buchanan’s recruitment, or to explore options with at least one competing firm. This decision comes after the company terminated Buchanan’s contract just months into his leadership due to allegations of unethical business practices involving a personal relationship with Chandra Holt, a former colleague.
In light of these developments, Kohl’s has established a special committee tasked with identifying its next CEO. The board had previously conducted a comprehensive background check and reference evaluations, but concerns regarding Buchanan’s ethics and judgment were raised by Blue Heron Research Partners, which interviewed his former associates prior to his appointment.
David Rynecki, founder and CEO of Blue Heron, noted that there were significant warning signs regarding Buchanan’s suitability for the CEO role, suggesting that the board may have overlooked critical information. Since his departure, further scrutiny has revealed potential issues from Buchanan’s tenure at Walmart, where he previously worked alongside Holt.
Michael Bender, who has taken on the role of interim CEO, previously served as chair of Kohl’s board and held executive positions at Walmart. The company is currently facing challenges, including increased competition and a struggling consumer base, which have contributed to three consecutive years of declining sales. Kohl’s stock has also seen a significant drop of approximately 40% this year.
As Kohl’s navigates this transitional period, the search for a new leader is crucial for the retailer’s future stability and growth.
**FAQ**
*What led to the dismissal of Kohl’s CEO Ashley Buchanan?*
Ashley Buchanan was dismissed due to allegations of directing business to a personal acquaintance, raising concerns about ethical conduct and conflicts of interest.