Chip Wilson's possible sale of remaining stake in Lululemon set in motion

Lululemon shares were down this morning after a filing with U.S. regulators that paves the way for founder Chip Wilson, his wife Shannon and a holding company they control to sell their entire remaining stake in the company.

The filing with the Securities and Exchange Commission on Thursday sets things in motion for Wilson to sell his 20,109,131 shares in the yoga apparel company. All in all, that's 14 per cent of the company.

In a statement, a spokesperson for Wilson said the filing doesn't mean he intends to sell immediately — it merely gives him the ability to do so in the future.

"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," the statement read.

Lululemon shares were down about two per cent to $65.49 on the Nasdaq on Thursday in reaction to the news.

Wilson founded Lululemon in Vancouver in 1998 and served as CEO until 2005, when he became chair. But in recent years, there has been an acrimonious split between Wilson and the current management due to competing visions for the business, and a series of public statements by Wilson that the company tried to distance itself from.

Wilson said two new directors proposed by the board didn't aligned with the company's "core values of product and
innovation."

• Lululemon pants 'don't work for some women's bodies' founder says

Wilson had previously sold off large chunks of his holdings dating back to the summer of 2013, and the two sides had previously suggested he would sell off his entire stake at some point.

He stepped down as chair last May and resigned from the board entirely this past February.