Following his resignation from the company’s board earlier this year, Chip Wilson, founder of yogawear company Lululemon Athletica Inc., expressed his interest in selling his family’s estimated $1.3 billion stake in the brand.
Lululemon disclosed the news of the potential sale in a regulatory filing on Thursday and said Wilson, his wife and other entities that they control may be interested in selling all of their shares.
“The prospectus supplement filed by Lululemon simply enables Chip Wilson to sell his shares in the future, if he chooses to do so, on the same basis as any other stockholder,” a spokesperson for Wilson said in a press release.
Wilson stepped down from the company’s board following a series of controversial flubs, one among them, blaming women’s thighs for pilling in the yoga pants. Wilson told Reuters in April that he had trouble finding a qualified candidate willing to join the board since the review he pushed for had not led to the changes expected.
When Lululemon reached an agreement with Wilson last year, it said it would have an independent expert review its governance policies and the composition of its board however, it has yet to outline any review findings or make changes to its governance strategies.
He and his family have the right to nominate one member of the board but did not pick a nominee for election at the company’s shareholder meeting that took place earlier this month.
The Wilson family is reportedly looking to use the money to invest as much as $300 million to fund the expansion and roll out of the family’s Kit & Ace stores in the near future. Kit & Ace is a luxury performance brand created by Chip’s wife and son, which features athleisure styles and machine washable cashmere, dubbed Technical Cashmere. The retailer plans to open stores in Australia, Britain and Japan this year.
Last year, Wilson agreed to sell half of his stake in the company to a private equity firm, Advent International.
Lululemon shares dropped as much as 2 percent Thursday, closing at $66.07.