Lululemon Urges Shareholders To Reject Chip Wilson's Board Nominees

(RTTNews) - Lululemon Athletica Inc. (LULU) is urging its shareholders to turn down the board nominees put forward by founder Chip Wilson. They believe his "outdated views" and "concerning conflicts of interest" could really hamper the company's efforts to recover.

This plea comes after settlement talks with Wilson fell through. He holds an 8.97 percent stake and has been pushing for more say on the board.

Lululemon feels their candidates, like former Levi Strauss & Co. CEO Chip Bergh, are better suited to support the incoming CEO Heidi O'Neill, who's been with Nike, Inc. for a long time and is set to step in this September.

Wilson, on his part, is still open to negotiating a settlement and argues that his nominees bring valuable creative leadership experience.

Lululemon's stock has taken a hit this year, dropping nearly 43 percent, as they deal with declining demand, stiffer competition from brands like Vuori and Alo Yoga, and the effects of tariffs.

The shareholders will have their say on the competing board candidates during the annual meeting scheduled for June 25.