Lululemon founder Dennis Wilson is on the verge of severing ties with the retailer after it filed for him to sell his $1.2bn (£772m) stake.
The move would bring to an end a contentious relationship between Wilson and Lululemon, according to the New York Times.
Wilson founded the yoga wear retailer in 1998 and holds a 14% stake in the company. That includes shares held by Wilson’s family and LIPO Investments, which Wilson controls.
The Lululemon founder stepped down as chairman in December 2013 following controversy over a product recall after it was discovered the retailer’s proprietary Luon fabric was too see-through.
Women who attempted to return the yoga pants were reportedly told to try them on and bend over to allow staff to ascertain how see-through they were.
The PR disaster escalated when Wilson suggested some women were too large to wear them.
Tensions between Lululemon and Wilson heightened after the latter voted against the reappointment of two fellow directors.
After that situation was resolved, problems still remained over Kit and Ace, the retailer set up by Wilson’s wife Shannon and oldest son JJ Wilson.
Similarities between the business models of Kit and Ace and Lululemon led to further clashes over how involved Wilson was with Kit and Ace. Wilson resigned from Kit and Ace’s board earlier this year.