Lululemon Athletica Inc., the clothing company that primarily specializes in yoga and other athletic gear, has been rumored to be in line for a possible buyout, according to the Huffington Post. Dennis “Chip” Wilson, the founder of Lululemon, has advisers that have been in conversation with private investors, such as Leonard Green & Partners, to discuss a financial takeover.
Wilson stepped down from his position as chief executive in 2005 and also gave up his role as chairman in May. He currently stands as a director, but he has “grown increasingly unhappy with the strategic direction set by the retailer’s board and voted against its new chairman and another director,” according to The Wall Street Journal.
There has not yet been a release of a final deal, but the buyout is still an imperative concern for the athletics apparel retailer.
“We have seen a lot of premature speculation about transactions that Chip Wilson may or may not be considering. Chip will decide if and when he wants to do a transaction of any sort,” said Wilson’s spokesperson in an email with Reuters.
The Wall Street Journal reported that Lululemon’s shares have decreased in value by 30 percent during 2014. The root cause of this industry downfall is unknown. However, Wilson rubbed many people the wrong way when he blamed the yoga pant breakdown on overweight customers.
Many firms are hesitant of the buyout due to hesitations with Wilson and the company’s $6 billion worth, which would require a pretty large check. Matters have been kept private up until this point, so chances are the public will not be wholly informed until the decision has been settled.