By skyforbes Activist investor Elliott Investment Management has built a stake of more than $1 billion in Lululemon Athletica (NASDAQ:LULU) and is pushing for changes at the athletic apparel maker, including backing a potential chief executive candidate, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The investment makes Elliott one of Lululemon’s largest shareholders, the report said, at a time when the Vancouver-based company is grappling with slowing momentum and leadership uncertainty.
Lululemon said last week that Chief Executive Calvin McDonald will step down in January following mounting criticism over product quality, heavy discounting, and concerns that the brand has “lost its cool.”
Elliott has been working with veteran retail executive Jane Nielsen, formerly a senior executive at Ralph Lauren and Coach, whom it views as a potential CEO candidate, according to the Journal.
The activist’s involvement comes alongside pressure from Lululemon founder Chip Wilson, who has publicly called for urgent change and weighed in on the succession process.