Lululemon Athletica Founder Fights for Company Control

Founder Chip Wilson fights for more control over the yoga gear maker's operations.
4:12 | 06/23/14

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Transcript for Lululemon Athletica Founder Fights for Company Control
Then that -- Orkut has lost -- disclosing what this Monday June 23 the story stock. To date the battle brewing at lululemon the Wall Street Journal report that the founder -- Wilson apparently not going gently into that goodnight. And -- -- it's a pretty big guns -- way to get back into control. The company secure courtroom drama intrigue and details. -- -- Finance Lauren Anderson achievements -- -- -- your downward facing dogs to prepare for this report. You know I have I was also checking to make sure that might lululemon pants -- not -- fifty eliminate that as part of this story -- got and you got right to the heart of it. Break it I was -- and that got them down in the bottom of a -- Break it down or so what happened that -- So he's retained bankers at Goldman Sachs -- working with -- to possibly find a way to shake up the board at lululemon -- tit. I get it involved in some kind dad private equity deal for the company's so he's coming in and shaking things -- this is of course. The founder of the company he announced back in December that he was stepping down as chairman. After got a lot of hot water over and things including. After the see through pants drama. Saying day. Lululemon -- wasn't for overweight people that mean you get your eyes run together like that can be a problem he just. He got on a hot water over his comments and and not coming back and a big way. A -- well here's exactly you were his words he had for Bloomberg TV this is back in November he said. Some women's bodies just don't actually work for it it's really about the -- through the -- how much pressure is there I mean over a period of time. And how much they use it so according to the journal -- as he walking -- those statements. Disgust -- them at all -- is he addressing mad or is it just now might come I want it back. So he apologize for -- -- YouTube video but lululemon problems didn't and with guys running together and -- the chairman and founder making horrible comments about women and it. Wear the clothes at times they have had performance issues. Day and how to -- and negative outlook that saw shares tumbled recently. In addition to that they're struggling with their assortment there -- they're struggling with competitors that are offering some similar basics and eating away from. Their product and they didn't happen fast and it was really the big seller -- is really where the trend is going so they even stumbling with and number. Product issues sales issues performance issues the stock is taking a beating so. And that is high and this sent text with which -- this is going on that this has been a company that recently has been stumbling in more ways than just the the -- garbage at the time. Yet -- but at the pub the public relations on -- that was greater because of all that but I want to take a look at the two day chart their seats at how some investors have been reacting to all of this. If you know this is one of those cases where investors are sort of trying a blind I want to the product in two to the market in really just believing that there is long term growth early sustainability in this company. So what you're seeing the little that it and excitement over this Wall Street Journal report which could generate some idea that there may be kind of a war -- bidding war to take over the accompanied it could unlock some value laying. Where we could see -- A bidding war and not what investors appear to be excited about with this news it's come -- -- -- with the stock is reacting to you for share. And he has what 27% ownership in the company has 27% of the company -- he's gotten Madden he's a larger shareholder you've -- point 7%. What would you look at that how much that of a factor is that when it comes to the board make incisions. Well I have a phenomenal work to be honest you know we'll we'll have to see -- with what the board comes back when and how this transpired you know in the wake of this Wall Street and -- -- which is has. You know did did that they tonight information that we have at this point badgering her a lot more that's going for -- -- The latency and find out what that is going to be -- -- from Yahoo! finance Lauren now must state you are not going into this story stockings they would ABC news dot copper latest headlines. I'm -- Cutler New York.

This transcript has been automatically generated and may not be 100% accurate.

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