Arizona News Online

Lululemon stock falls as founder prepares to sell his shares

Lululemon stock falls as founder prepares to sell his shares

Founder Dennis “Chip” Wilson looks poised to sell his family’s entire stake in Lululemon Athletica Inc., a move that could signal the end of a rocky relationship between him and the company’s board. Wilson alone controls a 14.2% stake in Lululemon valued around $1.2 billion.

Lululemon has filed with the SEC for founder Chip Wilson to sell his entire stake in the company. A sign is displayed on a Lululemon Athletica Inc. store on March 19, 2013 in Pasadena, California. Lululemon removed some of its popular pants from stores for being too sheer.

The yoga-gear retailer informed the U.S. Securities and Exchange Commission on Thursday morning that Wilson, his wife Shannon, and two investment firms under his control are prepared to sell their shares. The announcement sent shares of Lululemon down in early trading by 2.2% to $65.27.

The founder previously owned 28% of the Canadian company, but sold half of his shares in a settlement last August. The agreement was reached after a public dispute with the board in which Wilson voted his entire stake against the re-election of the company’s chairman. Wilson started Lululemon in 1998 and served as CEO until 2005. He stepped down as chairman of the board in 2013 and resigned from the board in February.



December 2017
« Nov