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Beyond Yoga’s Sale to Levi’s Started with a Cold Message on LinkedIn

Beyond Yoga’s Sale to Levi’s Started with a Cold Message on LinkedIn

Hello, Broadsheet readers! Regulators fined Citibank $135.6 million, dealing a major blow to CEO Jane Fraser, a female-founded DNA company became a unicorn, and the Beyond Yoga founder gave her first exit interview after Levi Strauss.

– Exit interview. Michelle Wahler just dropped her child off at college. At least that’s how she describes her decision to step down from her company, Beyond Yoga, after 18 years at the helm.

In 2005, Wahler joined the brand’s original founder, Jodi Guber Brufsky, to bring a vision of inclusive activewear to life and sold the brand to Levi Strauss in a buzzy acquisition in 2021. The $400 million deal marked the $6.2 billion denim maker’s entry into the activewear category and a way to reach more female consumers. Wahler remained with the brand through the acquisition and stepped down in early 2024; her successor is Nancy Green, the former CEO of Athleta.

“It’s different than I expected. And it was more emotional than I expected,” she says of her decision to leave the company during her first interview since leaving. “The first few days, I kept checking my email. I was really shocked that no one was reaching out to me — it was a huge change. I think I had this vision that even if I was handing over, I would show up the next day, bringing everyone coffee and donuts. I realized I needed to give everyone, including myself, a moment to separate, so they could bond with their new leader.”

Michelle Wahler, co-founder of Beyond Yoga.

Courtesy of Beyond Yoga

She returns to the college analogy. “Decisions are being made right now that impact my baby,” she says. “We hope he makes the right decisions, and they may be different than ours. But we hope he makes smart, healthy choices.”

Under the leadership of parent company Levi’s, Beyond Yoga grew to $100 million in sales and opened its first brick-and-mortar stores. The Los Angeles-based team got creative by using the iconic fabric of its yoga pants for fitting room curtains, so customers were forced to touch the fabric no matter what product they were trying on.

The acquisition was considered a success. For Wahler, it came out of nowhere: She received a cold LinkedIn message from a Levi’s executive and initially thought Levi’s was interested in some kind of collaboration with the brand. “I really had no intention of selling the company,” Wahler recalls.

Today, Wahler advises founders to think carefully before agreeing to a sale and know its value. “You’re probably only going to get one shot at the apple,” she says. “So make sure it’s rewarding, because it’s hard to give up your business and that control. Make sure it’s worth it.”

Emma Hinchliffe
[email protected]

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ALSO IN THE HEADLINES

– I’m counting on it. Federal regulators fined Citibank $135.6 million Wednesday for failing to adequately mitigate risks and internal problems, a blow to CEO Jane Fraser, who has been on a mission to streamline and rejuvenate the troubled institution. Fortune

– Unicorn spotted. Element Biosciences, led by founder and CEO Molly He, has raised $277 million in Series D funding to continue building out its DNA sequencing platform. The funding values ​​the San Diego-based company, which it says is designed to make precision medicine more accessible, at $1.03 billion. Forbes

– Talk to the manager. The Federal Trade Commission, led by Chairwoman Lina Khan, is considering suing CVS Caremark, Express Scripts and OptumRX, the three largest pharmacy benefit managers, for allegedly steering patients toward prescription drugs at inflated prices, according to CNBCIn statements, CVS Caremark said it was “proud of the work we’ve done to make insulin more affordable for all Americans with diabetes,” Express Scripts said “insulin and other drug prices are set by their manufacturers,” and OptumRX has yet to comment.

– No worries, no money. The Biden administration has proposed new measures that would require hospitals to provide maternal health training to staff and take other maternal safety measures. The rule would apply to hospitals enrolled in Medicare and Medicaid; violators could lose federal funding. Axios

– Dating wars. Tinder and Bumble are struggling to keep up with the user growth of rival Hinge and the popularity of LGBTQ+ dating app Grindr. Experts attribute the decline of Tinder and Bumble, both run by women, to the death of hookup culture and Bumble’s rebranding this year. Quartz

ON MY RADAR

Allyson Felix presents a nursery for athlete moms at the Paris 2024 Summer Olympics CBS

She’s the boss of Wimbledon, from center court to strawberries the wall street journal

A scathing portrait of how the Kennedy men treated women Washington Post

FAREWELL WORDS

“At my age, you have to play with happiness, not with anxiety.”

— Zhiying Zeng, 58, who will make his Olympic debut with the Chilean table tennis team this year

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