Lululemon’s founder wages proxy battle at struggling leggings retailer

Lululemon’s founder wages proxy battle at struggling leggings retailer

Lululemon Athletica’s founder has launched a proxy battle to revamp the struggling yoga clothes retailer’s board as the administrators seek for a new CEO.

Chip Wilson, Lululemon’s second-largest shareholder with a 9% stake, has been an outspoken critic of the company’s management — describing the current board as “complacent” in the face of declining sales in the all-important North American market.

He said Monday he’s nominating three new administrators – former On Running co-CEO Marc Maurer, ex-ESPN chief advertising and marketing officer Laura Gentile and former Activision CEO Eric Hirshberg – to spearhead the search after Calvin McDonald said this month that he’s stepping down as chief government in January.

Chip Wilson is the founder and a former CEO of Lululemon Athletica. Bloomberg through Getty Images

“The recent CEO change announcement was the third total failure of board oversight with no clear succession plan in place,” Wilson said in an announcement. “Shareholders have no faith that this Board can select and support the next CEO without input from a board with stronger product experience.”

Activist investor Elliott Investment Management is also pushing for change at the top, having not too long ago amassed a $1 billion stake in the Vancouver-based company. Elliot Investment is advocating for former Ralph Lauren government Jane Nielson to grow to be the next CEO.

Wilson, who’s also Lululemon’s former chief exec, says the company has misplaced its “cool” issue. 

The Post has sought remark from Lululemon.

Former Activision CEO Eric Hirshberg. Charley Gallay

Former ESPN chief advertising and marketing officer Laura Gentile. Getty Images

Former On Running co-CEO Marc Maurer. Getty Images for Footwear News

This 12 months, the company made quite a lot of vogue blunders, introducing brilliant colours that landed on clearance racks and paving the means for rivals like Alo Yoga and Vuori to seize marketshare.

Known for pricy duds like $100-plus leggings, Lululemon discounted more merchandise this 12 months than ever before in its 27-year historical past.

Bright pink, yellow, blue, inexperienced and purple merchandise appears more like “Sesame Street,” and is overwhelming the muted, mushy pastels the chain is understood for, Jefferies analyst Randal Konik wrote in a research notice this summer time.

Lululemon’s shares rose by about 1% Monday on the news about Wilson’s proxy fight. Earlier this month, the inventory spiked by 10% to $208 when McDonald announced his resignation after seven years at the helm.

Wilson said he’s not advocating to place himself on the board.

“I know this campaign for change cannot be about me,” he explained. “It is about recommitting Lululemon to genuine creative leadership that will re-establish a brand of enduring strength.”

Two activist buyers are pushing for change at the Canadian yoga put on company. jetcityimage – inventory.adobe.com

Wilson’s tenure at the company led to 2015 when he stepped down from the board after quite a lot of public gaffes, including his notorious rationalization for a 2013 yoga pants recall. He said overweight prospects had been partly guilty.

“Quite frankly, some women’s bodies just actually don’t work for [the pants],” Wilson said when requested about recalled tights that had been so sheer they revealed women’s buttocks.

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