Lululemon founder Chip Wilson escalates demand to oust four directors

Chip Wilson and Summer Wilson. The B.C. Parks Foundation will be unveiling its biggest ever donation, which will allow the purchase and permanent protection of 311 hectares of pristine habitat in three locations stretching from the far North East Rocky Mountain foothills to the far South East deserts of B.C. Donor, apparently Chip Wilson and Summer Wilson, through their Wilson 5 Foundation.………………………(Photo credit: Francis Georgian / Postmedia) , Vancouver. Vancouver Reporter: , ( Francis Georgian / PNG staff photographer) [PNG Merlin Archive] Photo by Francis Georgian / PNG staff photographer

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Chip Wilson, founder of Lululemon Athletica Inc., ratcheted up his campaign to bring change to the struggling yogawear chain, saying in a shareholder letter that more directors should be replaced and calling the board’s responses to his overtures “weak and insufficient.”

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The escalation came after Wilson sent a framework for a settlement to the board in December that made several requests, including that four members of the board step down or retire over the next two years, according to a person familiar with the situation.

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In the shareholder letter, Wilson also called for the entire board to be elected each year, instead of staggered — a request also made in his settlement framework, said the person who wasn’t authorized to speak publicly on the matter.

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Then on Friday, Wilson said in a letter to shareholders that he had a “strong feeling” that more directors should be replaced than the three he already nominated. In the note, he said that some directors had spoken to one of his candidates.

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In a response Friday, Lululemon said the board has had preliminary conversations with former On Holding AG executive Marc Maurer.

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The company added that it’s continued to engage with Wilson but disagrees with his characterization of their interactions. Lululemon said the board has requested to interview Wilson’s director nominees, but that he had indicated that he will not allow the meetings unless the board agrees to his full settlement terms.

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“It is unfortunate that Mr. Wilson has been unwilling to have a constructive dialogue toward a reasonable resolution,” Lululemon said.

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The company’s stock fell as much as 2.8 per cent. The shares had already declined 10 per cent this year, after losing nearly half their value in 2025.

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The company’s founder started his public push in October after the chain’s results weakened and its stock price sank.

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“In support of all shareholders, I am pursuing a campaign to catalyze a quantum of change that is sorely needed at Lululemon,” Wilson said in his first shareholder letter of this campaign.

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Wilson also said in the letter that the only concrete proposal the board has responded with is wanting him to sign a non-disparagement agreement, which he described as “showing that their priority is protecting their own reputations, instead of upholding their fiduciary duty for all shareholders.”

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Lululemon is without a permanent chief executive officer as it faces pressure from investors and product mishaps. The retailer is expected to report its slowest annual sales growth since it went public in 2007, as attempts to win back shoppers with colors and big logos have fallen flat.

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And on top of pressure from Wilson, Elliott Investment Management, which is known for running activist campaigns, took a more than US$1 billion stake in the company late last year.

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