Lululemon Founder Condemns Board After Latest Product Failure
Chip Wilson, the founder of Lululemon Athletica Inc., has launched a scathing public attack on the company's board of directors following the recent controversy over the "Get Low" leggings, which customers complained were see-through. In a LinkedIn post, Wilson described the incident as a "total operational failure" and blamed it on the board's shortcomings.
A History of Quality Issues Resurfaces
This latest product misstep is not an isolated event for Lululemon. It closely mirrors a 2013 incident where the company had to recall numerous black yoga pants due to similar transparency concerns. The recurrence of such quality problems highlights ongoing challenges in the retailer's product development and quality control processes.
Wilson, who remains one of Lululemon's largest shareholders, has been engaged in a public campaign against the company he established in 1998. He is advocating for a significant shakeup of the board, citing what he perceives as a lack of experience in creative industries and an excessive focus on short-term gains over product excellence.
Immediate Fallout and Company Response
In response to customer feedback, Lululemon temporarily suspended online sales of the "Get Low" leggings shortly after their launch, though the products remain available in physical stores. The company stated that this pause was intended to better understand initial customer reactions and to provide additional product education, with plans to resume online sales in the near future.
This controversy adds to the pressure on Lululemon as it strives to regain sales momentum and rebuild consumer trust. Approximately 18 months prior, the company withdrew its Breezethrough line following reports of unflattering fits, indicating a pattern of product launch issues.
Broader Context and Leadership Changes
The timing of Wilson's criticism coincides with significant leadership transitions at Lululemon. Last month, the company announced that CEO Calvin McDonald will step down at the end of January, with the board actively searching for a successor. Additionally, activist investor Elliott Investment Management has acquired a stake exceeding US$1 billion in Lululemon and is collaborating with retail executive Jane Nielsen on the company's strategic direction.
As Lululemon navigates these challenges, the founder's vocal dissatisfaction underscores deeper tensions within the organization, raising questions about its future governance and product strategy in the competitive athletic apparel market.
