Lululemon told investors it will put the fight with founder Chip Wilson to a shareholder vote next month after formally rejecting his three board nominees.
In its letter, the company said Wilson's public attacks have hurt shareholders and cast his nomination push as an effort to regain influence over the athletic-wear maker.
Wilson, Lululemon's second-largest shareholder with an 8.97% stake, has argued current leadership has deprioritized creative excellence and sought to "redefine" the company.
The vote caps an escalating proxy battle that followed failed settlement talks last week and has turned into a broader dispute over Lululemon's direction.
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Is Chip Wilson’s campaign a genuine rescue mission for Lululemon, or a power grab fueled by an outdated vision?