Lululemon founder Chip Wilson has escalated his proxy war, demanding the removal of directors linked to private equity firm Advent International. This move intensifies a governance crisis already fueled by Elliott Management’s $1 billion activist stake and the abrupt exit of CEO Calvin McDonald.
Lululemon’s founder, Chip Wilson, is drawing a line in the sand. According to reports from Semafor, Wilson—the company’s second-largest shareholder—will not settle his ongoing proxy contest unless two key board members resign: lead independent director David Mussafer (managing partner at Advent International) and Chair Marti Morfitt.
Wilson’s demand to oust leadership stems from a fundamental critique of Lululemon’s current direction. He blames the lingering influence of private equity firm Advent for a “loss of cool,” arguing that the board has prioritised Wall Street analyst expectations over the product innovation that originally defined the brand. This tension emerges as Lululemon faces stalling U.S. sales and rising pressure from agile competitors like Vuori and Alo Yoga.
The Activist pincer movement
The governance battle is no longer a solo effort by the founder. As previously reported by SGI Europe, activist powerhouse Elliott Management has built a $1 billion stake in the company. While Wilson and Elliott are reportedly not in direct coordination, they represent a two-front assault on the current board. Wilson’s focus centres on product DNA, brand culture, and purging the “private equity mindset,” and he has nominated a slate of industry veterans, including former On Running co-CEO Marc Maurer. Elliott’s focus, meanwhile, is on shareholder value and a disciplined search for a new CEO following the departure of Calvin McDonald, which left the company in a leadership vacuum during a critical market correction.
Lululemon: a brand at a crossroads
The conflict highlights the “founder’s dilemma” in the premium athleisure space. While Advent’s entry a decade ago provided the capital necessary for Lululemon’s global expansion, Wilson now views the firm’s continued presence as a liability. His challenge focuses on Mussafer and Morfitt’s roles at other underperforming consumer brands, such as Olaplex, suggesting a systemic failure in the board’s operational oversight.
With the 2026 annual meeting approaching, the outcome will likely hinge on whether institutional investors favor the stability of the Advent-era board or the “back-to-basics” vision proposed by Wilson and supported by the financial muscle of Elliott Management.
Go deeper
- Semafor: Jan, 20, Lululemon’s founder seeks Advent’s ouster in proxy fight
