Lululemon founder Chip Wilson is escalating his proxy fight by targeting the removal of private equity firm Advent from the company's board. Holding a 4.27% stake, Wilson has nominated three independent directors and demands the resignation of legacy directors, including chair David Mussafer, as a condition for any settlement.

This governance clash stems from Wilson's frustration with Advent's mixed track record in consumer investments since acquiring a stake in 2014. The dispute intensifies as activist Elliott Management, which disclosed a $1bn position, also pressures Lululemon for leadership changes, creating a rare dual-front challenge for the board.

The situation underscores how private equity ownership can become a flashpoint amid activist scrutiny and shifting shareholder expectations. Investors will watch for any settlement talks or a contentious annual meeting, where Wilson's campaign could force significant boardroom changes at the athletic apparel retailer.