When Vainglorious Founders F* Up Their Brand

*Foul

In the news: stories about two Canadian founders who believed they were above reproach and found themselves ousted from power.

American Apparel’s Dov Charney, dismissed for misconduct:

http://www.bloomberg.com/news/2014-06-19/american-apparel-to-terminate-founder-charney-as-ceo-for-cause.html

…and Dennis J. “Chip” Wilson, who inferred that Lululemon’s yoga pants were only sheer on women too big to wear them, is now brokering the company’s sale to the owner of the Vans and North Face brands:

http://www.bloomberg.com/news/2014-06-22/lululemon-under-pressure-from-founder-says-it-s-building-value.html

Can a brand successfully emerge from the damaging antics of its founder?

Wilson (L) and Charney (R).

220px-Chip-wilson

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One thought on “When Vainglorious Founders F* Up Their Brand

  1. Tu Thanh Nguyen

    It is difficult, but not impossible, for these companies to recover from the public backlash. The founder’ misconduct might severely affect the brand’s image, but loyal customers fall in love with the products and they can use a deflection s products’ story. The compantrategy to fix bad publicity. Hire a new CEO, introduce new innovative products, improve customer service quality are a few things the company can do to make the customer gradually forget about the bad press. The enjoyable product experience can restore the brand equity and help the brand to resonate with the customers again.

    Reply

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