Lululemon Founder Attacks Board After See-Through Leggings Recall
Chip Wilson publicly blasts Lululemon's board after another see-through leggings failure. Founder activism escalates amid CEO transition and $1B activist stake.
Chip Wilson, founder of Lululemon Athletica, launched an unprecedented public attack against the company's board of directors via LinkedIn following the athletic wear brand's latest product failure. The company paused online sales of its newly launched "Get Low" leggings just days after debut due to customer complaints that the product was see-through.
Wilson called the incident "a total operational failure" and "a new low for Lululemon" in his social media post. As one of the company's largest shareholders since founding Lululemon in 1998, Wilson blamed the board's "lack of experience in creative businesses, disinterest in product development and quality, and focus on short-term, self-interested priorities" for the recurring quality control problems.
Pattern of Product Failures Escalates Founder Tensions
This marks the latest in a series of product missteps for the struggling retailer. Approximately 18 months ago, Lululemon withdrew its Breezethrough line shortly after launch due to customer complaints about unflattering fit. The situation also recalls a 2013 incident when the company recalled black yoga pants over similar see-through concerns.
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While Lululemon halted e-commerce sales of the Get Low leggings, the product remains available in physical stores. The company stated it stopped online sales "to better understand some initial guest feedback and support with product education," expecting to resume sales soon. The repeated failures raise questions about quality control processes at a brand built on premium positioning.
Leadership Vacuum Intensifies Governance Crisis
The public criticism arrives during a critical transition period for Lululemon. CEO Calvin McDonald announced last month he will step down at the end of January, with the board currently searching for a replacement. The leadership vacuum adds pressure as activist investor Elliott Investment Management has acquired over US$1 billion in Lululemon shares and has been collaborating with former Ralph Lauren executive Jane Nielsen on company matters.
Wilson has been publicly campaigning for a board overhaul, using his significant shareholding position to challenge current governance structures. His decision to escalate internal conflicts into the public domain through social media represents a calculated communications strategy that bypasses traditional shareholder engagement channels.
Founder Activism Tests Corporate Governance Boundaries
The case illustrates growing tensions between founder vision and institutional board governance in mature companies. Wilson's LinkedIn attack weaponizes public criticism as a governance tool, applying pressure through transparent communications rather than private negotiations. This approach risks damaging brand reputation while potentially mobilizing other shareholders who share concerns about product quality and strategic direction.
For Asian business leaders, the situation offers lessons in managing founder relationships as companies scale beyond startup phases. The repeated product failures suggest deeper organizational issues around quality control, product development processes, and board oversight that public criticism alone cannot resolve. Whether Wilson's public strategy succeeds in forcing board changes or simply amplifies negative attention on an already struggling brand remains to be seen as the CEO search continues.
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