Lululemon founder sells half his shares after turbulent year
08/08/2014
The deal, worth $845 million, comes on the back of fraught discussion that included Chip Wilson stating that he did not have faith in the new management and voting against them at a board meeting.
Advent invested in the company in 2005 and worked with Mr Wilson and five of the company's 10 current board members, including chairman Michael Casey, to expand the company. It exited in June 2009.
Advent’s managing partner, David Mussafer, and managing director, Steven Collins, will join the board.
"The board is pleased that Chip and Advent are partnering in this transaction," said Mr Casey. "We welcome the opportunity to work with David and Steven, who have significant specialty retail experience and are deeply familiar with Lululemon's unique culture, having previously served as members of our board. “
In June, Wilson said the new chairman and another director were too focused on short-term growth. He said: “While I am excited about the new management team that I helped put in place, I am concerned that the board is not aligned with the core values of product and innovation on which Lululemon was founded and on which the company thrived. As a 27% shareholder in the company, I believe change is now needed at the Board level to increase shareholder value.”
He also caused a dip in the share price after suggesting some women’s shapes weren’t meant for Lululemon pants, and resigned as chairman in December following the sheer luon recall.
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