Lululemon Founder Chip Wilson Launches Proxy Fight to Change Board

Lululemon Athletica laminitis Chip Wilson is launching a proxy combat astatine the athletic-apparel retailer successful an effort to remake the company’s committee portion Lululemon searches for a caller main executive.

Wilson said Monday that helium has nominated 3 manager candidates to the company’s board, confirming an earlier study by The Wall Street Journal.

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The nominees are erstwhile On Running co-CEO Marc Maurer, erstwhile ESPN Chief Marketing Officer Laura Gentile and erstwhile Activision CEO Eric Hirshberg.

Wilson isn’t trying to enactment himself backmost connected the board, which mightiness travel arsenic a astonishment to immoderate fixed his caller efforts to publically people the institution helium started. He remains Lululemon’s second-biggest shareholder, with a astir 9% stake, according to FactSet. (Vanguard is the largest holder.)

“I cognize this run for alteration cannot beryllium astir me,” Wilson said. “It is astir recommitting Lululemon to genuine originative enactment that volition re-establish a marque of enduring strength.”

Activist investors often pat erstwhile institution executives to assistance them shingle up targets, but it is uncommon to spot a laminitis of a institution turning to a hostile attack specified arsenic a committee fight.

Lululemon is successful the midst of an individuality situation and earlier this period said that its CEO, Calvin McDonald, volition measurement down successful January. Its banal is down 45% this year, portion the broader marketplace has rallied.

Pressure had been mounting for McDonald to crook astir the business, including from Wilson, who had been publically criticizing him and the institution for sidesplitting innovation and “losing its cool.” Sales person precocious stagnated successful the U.S., with newer rivals specified arsenic Alo Yoga and Vuori eating astatine marketplace share.

The Journal antecedently reported that Wilson had tapped fiscal advisers and was considering waging a proxy conflict earlier Lululemon’s information model closes astatine the extremity of this month.

Maurer, who stepped down arsenic On Running co-CEO astatine the extremity of June, helped physique a starring sportswear brand. Gentile founded ESPNW, ESPN’s marque dedicated to women. And Hirshberg oversaw apical franchises including “Call of Duty” during his clip astatine Activision, the largest conception of Activision Blizzard.

Wilson isn’t the lone 1 pushing for change. Activist Elliott Investment Management has built a involvement of much than $1 cardinal successful Lululemon and is advocating for erstwhile Ralph Lauren enforcement Jane Nielsen to beryllium the adjacent CEO, the Journal reported past week.