Lululemon feud with Chip Wilson lives on as company strips billionaire founder of right to board seat

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Wilson still owns 9.4 per cent of the company, which comprises more than half of his US$3.9-billion fortune

The billionaire’s right to designate a board nominee was terminated after he “failed to observe the requirements of the support agreement relating to certain contesting stockholder actions,” the company, best known for its yoga pants and workout gear, said in a recent filing that didn’t specify what prompted the change.

Shares of Lululemon rose to a record last week and have surged 77 per cent in the past year. Wilson, meanwhile, has sold into the rally, disposing of about US$725 million of the company’s shares in 2019, according to calculations by Bloomberg.Wilson “informed the board that he did not agree with the board’s conclusions,” according to the April 24 filing.

 

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So, you’re telling us they are squeezing the ‘Lulu’ out of the ‘lemon’? Chip Wilson must feel like that. Lululemon

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