Kohl's CEO fired for alleged business deal with romantic partner

The CEO at Kohl's department store was fired over an alleged business deal with his romantic partner.

Ashley Buchanan was fired Thursday as Kohl's CEO after the company learned that he allegedly told the retailer to engage in a “highly unusual” business deal with his romantic partner, Chandra Holt, according to anonymous sources, The Wall Street Journal reported.

Buchanan and Holt had an affair during his prior marriage, according to divorce proceedings, and they now live together in an upscale golf community in the Dallas suburbs.

The Kohl's board hired outside lawyers to conduct an investigation, which found that Buchanan allegedly violated the company’s code of conduct in two instances with a vendor with whom he had a personal relationship, according to a regulatory filing.

Buchanan directed Kohl's to conduct business with a vendor founded by this person “on highly unusual terms,” the filing reads. He also allegedly had the company enter into a multimillion-dollar consulting agreement where that person was part of the consulting team.

Holt is an adviser for Boston Consulting Group, which the consulting agreement was with, according to sources. She is also CEO of her coffee business, Incredibrew.

“I’ve known Ashley Buchanan for 10 years, but I have not received any compensation for my Incredibrew business from Kohl’s,” Holt said.

Buchanan allegedly didn't disclose his relationship with Holt, as required by Kohl's code of ethics, and the company determined his conduct was cause for termination. He will be required to reimburse Kohl's, on a pro-rated basis, a signing bonus worth $2.5 million and forfeit all equity awards from the company.

Buchanan declined to comment, The Journal reported.

Kohl's Chairman Michael Bender was appointed the company's interim CEO, becoming the fourth in three years. The retailer has struggled with decreased sales.