Friedland Enterprises discloses 5% stake in Lulu’s Fashion, calls for changes

Friedland Enterprises disclosed in a Schedule 13D filing with the SEC that it has acquired approximately 5% of the outstanding common stock of Lulu’s Fashion Lounge (LVLU) Holdings and is calling for immediate governance reforms to unlock shareholder value. Christian Friedland, founder of Friedland Enterprises and former CEO of Build.com for 17 years, believes LVLU shares are significantly undervalued despite the company achieving two consecutive quarters of positive Adjusted EBITDA and expanding gross margins by over 450 basis points. “Management has been working through an operational turnaround, achieving positive EBITDA, improved margins, and balance sheet improvements,” said Friedland. “What remains is governance reform, transparency, and strategic direction.” Friedland’s proposals include: Reduce authorized shares from 250 million to 10 million, eliminating the 88x dilution overhang created by the July 2024 reverse stock split governance failure. Reconstitute the Board of Directors by removing directors who presided over 95%+ stock price collapse since the November 2021 IPO and add members with relevant e-commerce and consumer brand expertise. Suspend all cash board compensation until stock reaches $10 per share; implement performance-based equity compensation with options at current market prices. Return founder Colleen Winter to the Board with formal merchandising authority to improve sell-through. Hire a permanent CFO within 120 days to replace the current “fractional CFO” arrangement or hire the existing fractional CFO to full-time capacity. Replace the investor relations function within 30 days. Form an independent Special Committee to evaluate strategic alternatives, including sale, take-private transaction, or merger scenarios.