Lululemon founder Dennis “Chip” Wilson is working with Goldman Sachs as he fights for control of the yoga pants maker, The Wall Street Journal reports.
The clothing company has had a rough year: First quarter comparable store sales fell 4% over last year, signaling that demand is tumbling.
And the downgrades have begun as shares have lost nearly a third of their value this year. The stock fell by 4 cents to $US40.23 on Friday.
Wilson desperately wants a new board, writing in a recent news release that he has “found a palpable imbalance in Board representation, which is heavily weighted towards short-term results at the expense of product, culture and brand and longer-term corporate goals.”
Wilson stepped down as chairman of the board last month after coming under fire last year for suggesting that some women’s bodies weren’t made to wear Lululemon’s yoga pants. He gave up his role as CEO in 2005.
“Among the founder’s possible options are selling his stake or joining with a private-equity firm in a buyout, other people familiar with the matter said,” WSJ reports. “So far, Mr. Wilson hasn’t made any decisions on further steps, said a person familiar with his thinking who wouldn’t elaborate on what is under consideration.”
Goldman helped take Lululemon public in 2007 and are negotiating an arrangement as Wilson shakes up his team. Lululemon’s board has sought advice from bankers in response, another source told WSJ.
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