Lululemon Sends Letter to Shareholders Criticizing Founder Chip Wilson

Lululemon Athletica has sent a letter to shareholders ahead of its June 25 annual meeting, criticizing founder Chip Wilson and his proposed board nominees. 97% stake and left the board more than a decade ago, has been attacking the company and damaging the brand.

It warns that electing Wilson's three nominees would endorse what the company calls misguided perspectives and risk derailing progress during a period of slowing demand in North America.

Wilson has spent months criticizing Lululemon's leadership and governance. He argues the company has lost its creative edge and has put forward three nominees he says understand how to foster creative excellence in design, technology, and execution.

Lululemon's nominees include former Levi Strauss & Co. chief executive Chip Bergh, former Unilever executive Esi Eggleston Bracey, and former Gap Inc. finance chief Teri List. Wilson's slate includes former ESPN marketing chief Laura Gentile, former Activision CEO Eric Hirshberg, and former On co-CEO Marc Maurer.

Settlement talks between the two sides collapsed last week after Lululemon offered to appoint two of Wilson's nominees along with a third mutually approved director. Wilson reportedly sought the right to replace directors if his nominees stepped down and requested reimbursement for his proxy campaign.

Last month the company named former Nike executive Heidi O'Neill as its incoming CEO, succeeding Calvin McDonald in September. Wilson has questioned whether O'Neill represents the kind of leadership needed to reignite growth. Lululemon said O'Neill combines deep brand expertise with operational discipline and pointed to her role in building Nike's women's division into a multibillion-dollar business.