Vancouver-based athleticwear company Lululemon publicly addressed its ongoing dispute with activist founder Chip Wilson in a letter to shareholders on Monday. The company mentioned that he holds “outdated perspectives” and has “troubling conflicts of interest,” which could hinder its efforts to turn the business around.
Lululemon’s letter explains why the company’s strategy, incoming CEO Heidi O’Neill, and board nominees are in shareholders’ best interest. It follows the collapse of settlement talks with the retailer’s founder last week.
“Wilson, who stopped serving on the Board over a decade ago for well-documented reasons, has been attacking the company and the Board for many years, damaging the brand and hurting shareholders. He has now put forward three opposing nominees in an attempt to regain increased influence over the company that he has coveted since he left,” the letter states.
“Your Board firmly believes that replacing any of lululemon’s directors with Mr. Wilson’s less qualified nominees would endorse his misguided perspectives, deprive the company of critical skills and expertise, and risk derailing our progress in an especially pivotal time for our business and organization.”
As stated in the letter, shareholders are expected to vote in favor and confirm June 25 as the date for the much-anticipated annual meeting.
Lululemon shares rose slightly following the letter’s release.
By CEO NA Editorial Staff
