The problems seemed to start when customers complained about the sheer fabric used in the company's pricey yoga pants. The New York Times explains the situation:
Some women who tried to return the pants at Lululemon stores said they were told to put them on and bend over so staff members could determine just how see-through they were. After a monthslong public-relations disaster, Wilson, who was chairman of the company, went on Bloomberg TV that November to share what he thought was a reasonable explanation. "Some women's bodies don't work for the pants," he said. "It's really about the rubbing through the thighs, how much pressure is there over a period of time."
In a video in 2013, Wilson tried to apologize, but it didn't go very well. The Times writer describes Wilson: "More than once, the way Wilson spoke reminded me of the airhead fashion model Ben Stiller plays in "Zoolander."
Here's an excerpt from the company's news release about Wilson:
Mr. Wilson concluded: "I have achieved the goals I set when I came back, and after careful thought, I believe that now is the right time to step away from the board. I leave behind a new and talented management team and new board construct. By stepping away from lululemon I will now have more opportunity to work with my wife and son as they grow their new business, Kit & Ace. I am so excited for Kit & Ace because it is where street clothing is going. Shannon and JJ have caught the next wave." Founded in 2014, Kit & Ace produces Technical Luxury™ products by using Technical Cashmere™ blends.