Lululemon Athletica is urging shareholders to reject a slate of director nominees put forward by company founder Chip Wilson, escalating a public dispute between the athletic apparel maker and its former leader.

The company disclosed that previous discussions with Wilson had collapsed due to what it characterized as escalating demands from the founder. The breakdown in talks has led to Wilson launching a proxy fight to gain board representation.

Lululemon has taken the unusual step of publicly criticizing its founder, describing Wilson's approach as "misguided" and "outdated" in its communications to shareholders. The company is actively campaigning against Wilson's director nominees ahead of the shareholder vote.

Wilson founded Lululemon in 1998 and built it into a major athletic wear brand before stepping back from day-to-day operations. The current dispute represents a significant rift between the founder and the company's current leadership team.

The proxy battle will be decided by shareholders, who will vote on whether to accept Wilson's nominated directors or support the company's existing board composition. Such founder-versus-company disputes are relatively rare in corporate governance but can create uncertainty for investors and employees when they occur.