August 10, 2014
Lululemon's Shares Sale
Lululemon’s founder Chip Wilson, never out of the news for long, has just sold half of his stake in the company to the private equity firm Advent International for $845 million. That’s a lot of Wunder Unders. Advent, now owning 13.85% of the company will add two of its executives to the Lululemon board; David Mussafer and Steven Collins, both previous members of the Lululemon board between 2005-2010. Wilson previously stepped down from his position as chairman in December, but has continued to play a large role in the company’s governance, recently urging shareholders to vote against reelecting certain board members, one being his successor. Maybe Chip’s increasing distance from the company will be beneficial, considering his disparaging remarks against women, and how much that hurt the company (as it should have). This move will also help solidify the company according to analysts, and as an avid Lululemon wearer I hope it will - although to be honest, whether it’s the public scandals, the diminishing quality, or just my attempt to spend less money, I haven’t purchased any Lululemon clothes in over a year. Let’s hope these continued changes to the company infrastructure can bring some of us tried and true Lululemon-ites back to the fold.