Lululemon founder says he’ll be ‘constructive’ to solve dispute

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 by Francis Georgian / PNG staff photographer

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Chip Wilson, the billionaire founder of Lululemon Athletica Inc., responded to criticism from the company, saying he’s looking for a constructive path forward and suggested a resolution could be reached.

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“There is no reason why we cannot reach a resolution to this fight quickly,” Wilson said in a statement on Monday. “The board has not provided me with detail on where our disagreements lie right now, but as of Friday last week, we seemed to be in full agreement on the principal terms.”

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Wilson said he’s been in negotiations with Chip Bergh, who’s in contention to become a board member, about a series of proposals, mostly related to the composition of the board.

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Wilson, who is one of Lululemon’s largest shareholders but no longer holds any formal role with the company, has applied pressure for changes to the board, arguing the retailer needs new directors to help find a way out of a sales slowdown that’s hit the stock.

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Earlier Monday, Lululemon rejected Wilson’s overtures to install new board members in a letter to investors. It set a shareholder vote for next month on its preferred slate of directors. The athletic-wear maker said Wilson has hurt shareholders with his criticisms of the board and that his nomination of three directors is an attempt to regain influence over the company.

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“He has been attacking the company and the board for many years, even when the company’s performance was stellar,” the retailer said in its letter. “Mr. Wilson has outdated perspectives about how to position lululemon and the future of the company, as well as troubling conflicts of interest.

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Wilson said that he’s “undeterred and willing to be constructive,” adding that his experience in the industry is valuable and he wants to make sure the board “has the right skills.”

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“As I told Chip Bergh over email, my hope is simply to have a regular dialogue like any large shareholder,” Wilson said.

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The retailer recently named Heidi O’Neill, a former Nike Inc. executive, as its chief executive officer. She’ll assume the role in September.

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Investors will vote on the three competing board nominees from the company and Wilson on June 25 at the annual meeting. In making its case to shareholders, Lululemon said its preferred slate of directors is essential to help O’Neill revive growth.

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Shares of Lululemon rose less than one per cent at 2:55 p.m. in New York trading on Monday. The stock had declined 43 per cent this year through Friday’s close, compared with a roughly eight per cent gain for the S&P 500 Index.

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