12:52 PM EDT, 05/01/2025 (MT Newswires) -- Kohl's (KSS) said Thursday that it named Chair Michael Bender as interim chief executive after the department-store chain's board removed Ashley Buchanan from the top role due to violations of the conflict of interest policy.

An investigation found that Buchanan, who assumed the CEO role in January, directed the company to engage in vendor transactions that involved undisclosed conflicts of interest, according to Kohl's.

The company said in a regulatory filing that "highly unusual terms" were offered to a vendor founded by an individual with whom Buchanan had personal ties. In addition, Buchanan caused the company to enter into a multimillion dollar consulting agreement with a team that the same individual was part of, according to the filing. The company said Buchanan's termination is not related to its performance.

Bender became board chair at Kohl's in May 2024, and his appointment as interim CEO is effective immediately. The company's board will initiate a search for a permanent CEO and announce a new chair in due course.

Kohl's said Thursday that it expects to report a first-quarter loss between $0.20 and $0.24 per share May 29. The company anticipates comparable sales to drop 4% to 4.3%. The consensus on FactSet is for a first-quarter comparable sales decline of 6.4%.

Kohl's shares were up 8.4% in Thursday afternoon trade. The stock has lost 49% in value so far this year.

The company in March joined a list of retailers that have offered a downbeat outlook for 2025 amid growing uncertainty over the impact of tariffs.

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