LULU secures a standstill agreement with its founder, restructuring the board and adding two new independent directors.
Lululemon Athletica (LULU) announced a cooperation agreement with founder Chip Wilson, who owns 8.7% of the company’s stock. The deal resolves a potential governance dispute and includes a standstill agreement to prevent further activist pressure.
The agreement adds Laura Gentile, former ESPN Chief Marketing Officer, and Marc Maurer, former Co-CEO of a private equity-backed firm, to the board. Wilson had previously criticized the company’s direction, raising concerns among investors about potential disruptions.
Shares of LULU showed muted movement in after-hours trading following the announcement.