The founder of Vancouver-based yoga clothing empire Lululemon has resigned from the company’s board, saying he’s focusing his efforts on his family’s new clothing venture.
Dennis (Chip) Wilson, who started Lululemon Athletica in 1998, made the surprise announcement Monday morning, saying now is the right time to “step away.”
“By stepping away from lululemon I will now have more opportunity to work with my wife and son as they grow their new business,” Wilson said in a statement.
Under his guidance, the Canadian company grew from a small storefront in Vancouver’s Kitsliano neighbourhood to 250 stores worldwide and an almost cult-like fan following from consumers.
Wilson’s tenure with the company hasn’t been problem-free, however. In 2013, a sheerness issue with its black Luon pants forced the company to recall 17 per cent of its merchandise.
That’s when Wilson blamed the problems over the popular pants by blaming customers’ body shapes.
Lululemon promised to change its production in light of the recall, and Wilson agreed to step down as board chairman.
Wilson took a family sabbatical in Australia in January 2012, but returned the following spring after a request from the other board members.
In August 2014, Wilson agreed to sell half his stake in the yoga gear company to Advent International, a private equity firm. The sale was worth $845-million, or almost 14 per cent of the company’s total shares.
Wilson now says he will dedicate his efforts on Kit & Ace, the new clothing company launched by his wife Shannon and son JJ.
The company, which launched last year, produces luxury clothing made of “Technical Cashmere,” a fabric innovation Wilson says was rejected by Lululemon three times before his departure.
The new venture has five stores in Canada and has just expanded to New York and San Francisco in the U.S. The company plans on expanding to Europe and Asia.
Wilson’s 30,000-square-foot mansion on Point Grey Road, valued at an eye-popping $57.6-million, is the most expensive home in B.C.
