(Adds outside source on nature of talks)
June 22 The founder of Lululemon Athletica
has turned to Goldman Sachs as he seeks a shake-up of
the yoga retailer's board of directors and may consider options
including a proxy fight or joining a private equity firm in a
buyout, the Wall Street Journal reported on Sunday.
The newspaper reported on its website that founder Dennis
"Chip" Wilson is working with bankers at Goldman and is in the
process of negotiating the terms of their arrangement as he
looks to shake up the board.
Wilson is working on building a team of advisors that will
likely include Goldman, a source familiar with the situation
told Reuters. The team should be finalized within the coming
week, the source said.
The Lululemon founder is looking at all options to assert
further control but has not determined his course of action,
said the source, adding that Wilson's decision is unlikely for
at least another couple of weeks.
Lululemon's board of directors has sought advice from
bankers in response to Wilson's pressure, according to the
Goldman declined to comment. A representative for Wilson was
not immediately available for comment.
Last Wednesday, Wilson, who has a 27 percent stake in
Lululemon, lashed out at the retailer's board, saying its new
chairman and another director were too focused on short-term
The company's shares dropped sharply last week after it cut
financial forecasts and warned that second-quarter sales were
A Lululemon spokeswoman said that the board and management
team are "relentlessly innovating to drive global expansion and
create value for Lululemon shareholders."
(Reporting by Euan Rocha in Toronto and Caroline Humer in New
York; Editing by Andrea Ricci, Nick Zieminski and Paul Simao)