Home / Business and Economy / Lululemon Founder, Chip Wilson, Nears Board Seat Deal
Lululemon Founder, Chip Wilson, Nears Board Seat Deal
27 May
Summary
- Lululemon nears settlement with founder Chip Wilson.
- Wilson may get board seats for promising peace for two years.
- Company sales have fallen, stock price has tumbled over 60%.
Lululemon Athletica is reportedly nearing a settlement with its founder, Chip Wilson, which could grant him board seats. Sources indicate discussions involve appointing two of Wilson's nominees to the board. In return, Wilson, who holds an 8.6% stake, would agree not to disparage Lululemon for approximately two years.
This potential agreement follows a breakdown in previous settlement efforts and a prominent proxy fight. Wilson has openly criticized the company, accusing it of losing its 'cool' factor and expressing concerns about management. Lululemon, in turn, has stated Wilson holds 'outdated perspectives.'
The athletic apparel company has faced financial headwinds, with sales in North America declining and its stock price dropping over 60% in the past 12 months. Lululemon is also contending with strong competition from brands like Alo and Vuori.
In preparation for a new chapter, Lululemon has appointed Heidi O'Neill as its new CEO, who previously built Nike's women's business. The company has also added former Levi Strauss CEO Chip Bergh and former Unilever executive Esi Eggleston Bracey to its board.
