Lululemon’s dispute with founder Chip Wilson has escalated further, with the athleisure brand publicly rejecting his proposed board nominees ahead of its annual shareholder meeting in June.

In a letter filed alongside its definitive proxy materials with the US Securities and Exchange Commission, the company urged shareholders to back its own director nominees – Chip Bergh, Esi Eggleston Bracey, and Teri List – instead of the slate put forward by Wilson.

“Building on decades of growth and value creation, the Lululemon board has taken and continues to take decisive steps to address recent performance with bold actions that position the company for its next phase of success,” the company said.

Wilson, who founded Lululemon in 1998 and remains its second-largest shareholder, has been publicly critical of the company’s direction in recent years.

He previously argued that the brand has lost its creative excellence and said the board lacked visionary leadership.

Last year, he criticized Lululemon’s diversity and inclusion efforts. In a 2018 interview with CNN, he said he lost control of the company when it went public and was stifled by its bureaucracy.

The retailer pushed back strongly against Wilson’s campaign, accusing the founder of attempting to regain influence over a company he left more than a decade ago.

“Mr Wilson has outdated perspectives about how to position Lululemon and the future of the company, as well as troubling conflicts of interest,” the board said.

“His actions have been damaging to the brand and harming the very stakeholders he claims to represent.”

The latest dispute follows the announcement that former Nike executive Heidi O’Neill will become Lululemon’s CEO in September.

In its shareholder letter, Lululemon defended the appointment, describing O’Neill as best suited for the position.

“Ms O’Neill will have a strong foundation to build upon for a fast start as she accelerates our path forward,” said the board.

“She is the right CEO at the right time to deliver on Lululemon’s full potential in the near- and long-term.”

The retailer also highlighted efforts underway to accelerate product innovation, shorten go-to-market timelines, tighten inventory management, and strengthen global brand engagement.

Wilson has nominated three alternative board candidates: former ESPN executive Laura Gentile, former Activision Blizzard executive Eric Hirshberg, and former On co-CEO Marc Maurer.

Lululemon said it had interviewed Wilson’s nominees but determined they “would not be beneficial to shareholders” and lacked the level of public company, apparel, and governance experience needed for the brand.

The company also raised concerns over Wilson’s ties to competing labels, noting that he has acknowledged advising rivals, including Alo Yoga and Vuori.

Shareholders will vote on the board nominees at Lululemon’s annual meeting on June 25.