Kohl's just dismissed its new CEO due to unethical activities.

After discovering that Ashley Buchanan had participated in unethical behavior, Kohl's removed its recently appointed CEO, who had only been in the role for less than five months.

Buchanan was fired "for cause," which is a rare criticism of a company executive that has significant ramifications in the business world. He "violated corporate regulations by ordering the corporation to engage in vendor transactions that contained hidden conflicts of interest," according to a news release following an examination by outside counsel.

"Unrelated to the company's performance, financial reporting, and results of operations, and did not involve any other company staff," Kohl's further stated, his dismissal.

In an attempt to turn around the faltering shop, Buchanan, a former CEO of the arts and crafts giant Michaels, took over as CEO of Kohl's on January 15. However, he was unable to accomplish that during his brief term, as seen by the company's preliminary earnings, which showed a 4.3% decline in revenue.

Until a replacement is selected, Kohl's board chairman Michael Bender will serve as temporary CEO. The announcement caused Kohl's (KSS) stock to jump as much as 8% during trading.

Neil Saunders, managing director of GlobalData Retail, wrote in a note that Buchanan's departure is a "distraction that the company does not need and can poorly afford."

recuperate from changing customer habits. In addition, it is battling high inflation, competition from internet retailers, and, most recently, the decline in consumer spending due to economic uncertainties.

Additionally, Kohl's recently stated that 27 of its sites would be closing, leaving roughly 1,100 stores open.