Kohl’s Corp. announced on Friday that the recent departure of a board director was linked to disagreements with the company, marking a shift in their stance from the previous day. This development highlights ongoing challenges at the retailer.
In a Friday filing, Kohl’s stated that Christine Day resigned from its board due to disagreements over the company’s response to recommendations from a shareholder advisory firm concerning executive pay and board procedures. Previously, Kohl’s had asserted that Day’s departure was unrelated to company operations, policies, or practices.
Emails included with the filing reveal that Day disputed the earlier portrayal of her resignation, stating, “There is simply no way the board could have interpreted my resignation as having no conflict issues. This was a deliberately selective edit.” Kohl’s, however, expressed strong disagreement with Day’s assertions.
This discord adds further pressure on the retailer, which is grappling with declining sales amid fierce competition and shifting consumer behaviors. Earlier, on May 1, the Kohl’s board dismissed CEO Ashley Buchanan, citing his involvement in directing business to someone with whom he had a personal relationship, Chandra Holt, without disclosing this relationship.
Day’s emails, included in the filing, expressed concerns over decision-making processes at the company, highlighting issues of transparency and communication. She noted that some individuals had more information than others, leading to feelings of alienation among board members.
Day explained that her departure stemmed from disagreements related to adherence to protocols and processes that should guide discussions and ensure transparency and accountability. She emphasized the importance of thoroughly examining accountability and root causes when mistakes occur rather than overlooking them.
Christine Day, previously the CEO of Lululemon Athletica Inc., resigned from the board on May 5, four days following Buchanan’s dismissal.
