Lululemon Athletica Inc. and founder Chip Wilson have extended a deadline for appointing a new board member under a settlement reached earlier this year, according to a new Bloomberg report. The deadline had been set for October 1. The company did not specify how long it had been extended or the reason for the delay.
Some wonder if Wilson’s latest legal wrangling, this time over his pending divorce from wife Shannon, could impact the pending changes at Lululemon. At the risk of sounding more like Page Six than SGB Executive, there is apparently no pre-nuptial agreement between the two, which could possibly put Wilson’s estimated $6 billion fortune in play – including his shares of the LULU business and his considerable stake in Amer Sports.
Bloomberg said in September that there is ongoing family litigation between the Canadian couple in the British Columbia Supreme Court, but the files, first filed in April, are apparently sealed. Shannon Wilson was said to be one of the brand’s first hires and served as its founding lead designer. Reports indicate Chip Wilson has credited Shannon Wilson with “playing a huge part in growing the brand into an $11 billion company,” according to recent New York Post reporting, leaving some to speculate how the couple will divide assets, especially Lululemon shares.
Shannon Wilson left Lululemon in October 2013 over concerns with the launch of her cashmere line. She reportedly went on to co-found the luxury apparel brand Kit and Ace in 2014 with her stepson JJ Wilson, according to multiple reports.
The announced extension marks the first reported issue since Lululemon and Wilson reached a truce in May following months of public disagreements. Under the settlement, the company agreed to take steps to appoint a director with “product and brand expertise in apparel,” with Wilson retaining the right to approve the candidate.
The search for a new director began shortly after the settlement, according to a person familiar with the discussions who was not authorized to speak publicly. As part of the agreement, Lululemon added two of three executives nominated by Wilson to its board. Wilson’s first two appointees, Laura Gentile, former chief marketing officer at ESPN, and Marc Maurer: former co-CEO of On, subsequently joined Lululemon’s board.
Wilson also agreed not to publicly disparage the company for about 18 months.
Heidi O’Neill, a former Nike executive, recently became Lululemon’s chief executive as the retailer deals with a slowdown and heightened competition. Since the year’s start, shares of Lululemon have declined 53.6 percent.
Image courtesy Lululemon Athletica Inc.
