Kohl’s has terminated its CEO Ashley Buchanan just less than four months into his tenure over transactions that involved “conflicts of interest”.

As part of the termination, Buchanan is no longer a member of the board. The company has also withdrawn his nomination for election as a director at the upcoming shareholder meeting.

In a statement, the company said Buchanan had violated its policies by directing vendor transactions that involved undisclosed conflicts of interest.

Kohl’s did not name the vendor, but the Wall Street Journal reported that the person was a former Bed Bath & Beyond executive. The two met when they both were at Walmart and developed a romantic relationship.

Citing financial filings, Retail Dive reported that the favoritism involved “highly unusual terms” including a multimillion-dollar consulting agreement.

Mark Cohen, a retail veteran who previously ran retail studies at Columbia Business School, told Retail Dive that firing a CEO just months after appointment is “as extreme a measure as you can imagine”.

Meanwhile, GlobalData MD Neil Saunders described Buchanan’s departure as “a blow upon a bruise” for the department store chain, as it gives the impression that Kohl’s is in a “perpetual state of chaos” and raises questions about the due diligence over his appointment.

“This is a distraction that the company does not need and can ill afford. Kohl’s now needs to find someone with the requisite skills to enact a quick turnaround and get the company back onto the front foot,” Saunders added.

The board has appointed Michael Bender as interim CEO and will retain a leading search firm to identify a permanent CEO.

The company stressed that Buchanan’s termination is unrelated to its performance, financial reporting, and results of operations.

The chain expects its first-quarter comparable sales to decrease 4-4.3 per cent and operating income to be in the range of $40 million to $45 million.