Lululemon says founder helped competitors Alo and Vuori

Lululemon (LULU) disclosed in a proxy filing that its founder Chip Wilson has advised the company’s competitors, Alo and Vuori. On March 30, Lululemon’s Executive Chair Martha Morfitt and former CEO Kathryn Henry met with Wilson to discuss a potential resolution. During the meeting, the company proposed a potential settlement that included, among other things, the appointment of one of Wilson’s directors to the board and the departure of one additional company director, a proposal to declassify the board at the annual meeting, and a standstill through the 2027 annual meeting. Wilson rejected these proposals and instead insisted that all three of his nominees be appointed to the board as a package, according to the filing. Wilson then proposed the formation of a “100-day,” 10-person committee comprised of former company employees to provide input to Lululemon. Wilson reiterated his previous comment that he had advised the company’s competitors, Alo and Vuori, Lululemon adds. Wilson further asserted that Alo and Vuori had adopted his playbook and had sought and received his advice, while lululemon had not.