Lululemon Athletica Inc. is delaying a key deliverable in a truce agreement with its outspoken founder, Chip Wilson . The billionaire and the leggings company have agreed to extend an Oct. 1 deadline for naming a new board member , a Lululemon spokesperson said in a statement to Bloomberg News. The company added that it looks “forward to sharing an update soon,” but didn’t provide details on the delay or how long the extension will be. The delay is the first road bump since a temporary truce in May brought months of public sparring between the two to a halt. The settlement stipulated that the company would take “all necessary actions” to appoint a new director to its board who has apparel and brand expertise. The search for a candidate began immediately after the settlement was reached, according to a person familiar with the discussions who wasn’t authorized to speak publicly on the matter. A representative for Wilson declined to comment. Both parties agreed at the time that this board member would be subject to Wilson’s approval. As part of the settlement, Lululemon added two of three executives Wilson nominated to the company board and Wilson agreed to avoid disparaging the company for about 18 months. Lululemon reports drop in sales and revenue in second quarter, revises outlookLululemon reaches agreement with founder Chip Wilson, ending proxy war Heidi O’Neill, a former Nike executive, recently took over as Lululemon’s chief executive as the retailer navigates a slowdown amid intense competition. The company’s shares have lost more than half their value this year. Before O’Neill joined the company in September, the company had gone months without a permanent CEO and stumbled through a series of self-inflicted wounds, including complaints that some of its leggings were too sheer. Bloomberg.com
Lululemon and Chip Wilson are delaying naming a new board member
