Lululemon Founder Chip Wilson Demands Advent's Ouster From Board in Escalating Proxy Fight

January 19, 2026 · by Fintool Agent

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Lululemon-1.53% founder Chip Wilson is intensifying his campaign for board change with a new demand: he wants private equity firm Advent International completely off the board, and he will not settle for less.

Wilson has made clear to people familiar with his thinking that no settlement is possible unless Advent's two legacy directors—including board chair David Mussafer—resign, according to Semafor. The founder views Advent's continued presence as a personification of everything wrong with Lululemon, and he's willing to wage a full proxy battle to remove them.

Shares closed at $201.87 on Friday, down 1.5% on the day and more than 60% below the December 2023 peak of $516.39—a collapse that has emboldened Wilson and put intense pressure on the board to deliver change.

The Long History: From Partners to Adversaries

Wilson and Advent were once close partners. In 2005, Wilson sold roughly half of Lululemon to Advent and Highland Capital Partners for $93 million—a deal that set the stage for the company's 2007 IPO. That transaction made Wilson a billionaire and gave Advent one of its most successful consumer investments.

But the relationship has soured dramatically over the past decade. After a 2014 scandal involving see-through yoga pants, Advent stepped in again, purchasing half of Wilson's remaining stake for $845 million. In exchange, Advent received two board seats and Mussafer became co-chairman. Wilson left the board entirely in 2015.

Now, Wilson blames Mussafer's focus on Wall Street metrics rather than product innovation for Lululemon's "loss of cool"—and he's pointing to Advent's track record elsewhere as evidence the PE firm can't be trusted to steward consumer brands.

Olaplex: The $9 Billion Collapse

Wilson's case against Advent centers on one word: Olaplex-0.61%.

The haircare company was one of Advent's signature consumer deals. The PE firm acquired Olaplex in January 2020 and took it public in September 2021 at $21 per share, generating what looked like an extraordinary return. At its peak, Advent was sitting on paper gains of roughly $9 billion—one of the most lucrative PE exits in recent memory.

But the story unraveled. Olaplex closed Friday at $1.64—a staggering 92% decline from its IPO price. The company has struggled with slowing growth, intensifying competition, and product liability concerns, turning what was hailed as a buyout masterpiece into a cautionary tale.

The connection to Lululemon is direct: Mussafer sits on both boards. In fact, three directors serve on both Lululemon and Olaplex—Mussafer, Executive Chair Martha "Marti" Morfitt, and Emily White. For Wilson, this interlock represents exactly the kind of insular governance that led Lululemon astray.

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Compare Lululemon's stock performance to Nike and On Running over the past 2 yearsShow me Advent International's other consumer portfolio companiesPull David Mussafer's board affiliations and compensation across all companies

Wilson's Slate: Creative Leaders, Not Operators

In late December, Wilson formally nominated three independent directors, making clear his priorities are brand and creativity over finance and operations: 1

Wilson's statement accompanying the nominations was blunt: "The simple truth is that the current Board lacks these skills and, as a result, lululemon is unable to win back the confidence of its critical stakeholders and regain commercial momentum." 2

He also submitted a non-binding proposal to immediately declassify the board so all directors face annual elections—a governance change that would accelerate the ability to replace directors. Only about 10% of S&P 500 companies still have staggered boards, making Lululemon an outlier. 3

Two Activists, No Coordination

Wilson isn't the only major shareholder pushing for change. Elliott Investment Management disclosed a $1 billion stake in mid-December and is running its own campaign to install former Ralph Lauren-1.65% executive Jane Nielsen as CEO.

But critically, Wilson and Elliott are not coordinating. Sources told Semafor that the two camps have had no substantive contact.

This creates an unusual dynamic: Lululemon faces pressure from two directions at once, with potentially conflicting priorities. Wilson is focused on board composition and creative leadership. Elliott is focused on installing a specific CEO with turnaround credentials. Whether these goals align—or conflict—may determine the shape of any settlement.

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What is Elliott Management's track record with consumer company activism?Show me Jane Nielsen's career history and accomplishments at Ralph LaurenCompare Lululemon's activist situation to Nike's recent governance challenges

The Board's Defense

Lululemon's response to Wilson has been pointed. In a December 29 press release, the company fired back: 1

"Mr. Wilson has not been involved with the company for a decade, and since his departure, lululemon has continued to adapt to the marketplace and lead the industry, building one of the most compelling growth stories in retail." 2

The board emphasized its track record: revenues increased nearly $9 billion over the past 10 years, from $2.1 billion in fiscal 2015 to an expected $11 billion this year. Income from operations grew nearly 6x, and the company returned $5.5 billion to shareholders through buybacks. 3

But the board's statement also revealed failed negotiations. Lululemon said it "engaged extensively and in good faith for many years with Mr. Wilson" and requested his director nominees privately to evaluate their qualifications—but "Mr. Wilson declined to engage further." 4

That refusal to negotiate privately signals Wilson is preparing for a public proxy battle rather than a quiet settlement.

The CEO Vacuum

All of this plays out against the backdrop of Lululemon's CEO transition. Calvin McDonald announced his departure in December after nearly seven years, effective January 31, 2026. 5

Wilson called the CEO search process "a tremendous failure by the Board to competently plan for the future" and argued the search must be led by "new, independent directors with real experience." 6

The interim leadership structure—CFO Meghan Frank and Chief Commercial Officer André Maestrini serving as co-CEOs while Executive Chair Marti Morfitt oversees strategy—does little to resolve the governance questions. If anything, it puts more pressure on the board to move quickly.

What Happens Next

The proxy fight timeline is set. Lululemon's 2026 Annual Meeting will be the showdown, and the company has hired J.P. Morgan as financial advisor and Sidley Austin as legal counsel. 7

Three scenarios emerge:

1. Settlement With Board Refreshment The most likely outcome is a negotiated settlement that adds one or more of Wilson's nominees while perhaps keeping some Advent representation. But Wilson's hardline stance—no deal unless Mussafer leaves—makes this difficult.

2. Full Proxy Fight If no settlement is reached, shareholders will vote on Wilson's three nominees versus the board's slate. With Wilson holding 4.27% and Elliott holding another ~4%, the activists have significant leverage but would need broader shareholder support.

3. Advent Voluntarily Exits Mussafer could choose to step down rather than face a bruising public battle. Advent has already sold down most of its stake—continuing to fight may not be worth the reputational cost, especially given the Olaplex baggage.

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When is Lululemon's 2026 Annual Meeting scheduled?Show me other proxy fights where a founder returned to challenge PE-backed boardsAnalyze Lululemon's institutional ownership to see who might swing the vote

The Investment Angle

At $201.87, Lululemon trades at roughly 16x forward earnings—cheap by historical standards for a company that once commanded 30x+ multiples. The company has a clean balance sheet: no debt, $1 billion in cash, and still-strong cash flow generation.

But the stock faces near-term catalysts in both directions:

For investors, the question is whether the activism leads to faster, better change—or becomes a distraction that delays the turnaround Lululemon desperately needs.

What's certain: the Advent era at Lululemon is entering its final chapter. The only question is how messy the ending will be.

Related Companies

• Lululemon Athletica Inc. (lulu)-1.53%
• Olaplex Holdings, Inc. (olpx)-0.61%
• On Holding AG (onon)-2.07%
• Ralph Lauren Corporation (rl)-1.65%