Lululemon Athletica, Inc. (NASDAQ:LULU) founder Chip Wilson has launched an attack on the company's board of directors, labeling recent quality control issues with the brand's product lines as a “new low” for the yoga-wear giant.
In a viral LinkedIn post, Wilson — who stepped down from the company years ago but remains its largest individual shareholder — did not hold back.
He pointed directly to the board's management as the root cause of what he describes as see-through leggings and declining product standards, specifically citing issues within the “Get Low” product line.
"This is a new low for lululemon. Pulling back the ‘Get Low’ product line after three days is clearly a total operational failure," Wilson said.
His comments come during a period of transition and perceived vulnerability for the brand as it navigates a shifting retail landscape and increased competition from upstarts like Alo Yoga and Vuori.
Wilson's critique centers on the idea that technical failures are symptomatic of a deeper cultural rot within the corporate structure.
He argued that the current leadership has prioritized corporate bureaucracy and a “diluted” brand identity over the technical excellence and high-performance fabrics that originally defined Lululemon.
“How could anyone reach a conclusion other than the board continues to make decisions that are destroying the brand and the stock price?” Wilson said, questioning the competence of the current leadership.
Proxy Fight
On Friday afternoon, Wilson launched a proxy contest to take back control of Lululemon, according to an SEC filing. He is officially attempting to replace members of the current board of directors with his own hand-picked candidates.
Wilson proposed a slate of three new directors to replace current ones:
Laura Gentile: Former ESPN executive
Eric Hirshberg: Former CEO of Activision
Marc Maurer: Current Co-CEO of On Holding AG (NYSE:ONON)
LULU Price Action: Lululemon stock slid 1.84% to $191.07 on Friday afternoon at publication, according to data from Benzinga Pro.
