Gildan apparel at a retailer in Montreal, Quebec, Canada, on Friday, Dec. 15, 2023.
Graham Hughes | Bloomberg | Getty Photos
Gildan Activewear talked about on Thursday that its total 12-person board would resign today in favor of activist Browning West’s eight nominees, all staunch now ending a contentious proxy fight and restoring used CEO Glenn Chamandy to the company he founded.
Browning West alongside with a most well-known quantity of Gildan shareholders had been struggling with to ship again Chamandy as CEO, after he used to be ousted in December in favor of Vince Tyra, who used to be brought in from Houchens Industries. The activist firm later claimed Gildan’s board used to be showing a “total push apart for sound company governance.”
Or not it’s miles the 2nd mass resignation within the boardroom after five directors stepped down earlier this year as half of a “board refreshment.”
The final time an total board resigned for the interval of an activist fight used to be in 2012, when Canadian Pacific’s board yielded to Pershing Square founder Invoice Ackman hours sooner than the railroad’s annual assembly.
“We are deeply grateful for the outpouring of toughen that Browning West’s slate and concept hang bought from our fellow shareholders, Gildan workers, and main proxy advisory companies,” Browning West’s Usman Nabi and Peter Lee talked about in a statement.
Headquartered in Montreal, Gildan is a supplier for foremost U.S. retailers and companies, including Amazon and Purpose. Below Chamandy’s leadership, the company has been attempting to pork up its abroad operations, with a spotlight on margins and spending.
Browning West, primarily based completely in Los Angeles, accused Gildan’s board of leaking an allegedly nonexistent sale route of to the media and hiring non-public investigators to switch attempting into even handed one of many firm’s nominees. Gildan accused Chamandy of mismanagement and talked about Tyra used to be the ideal candidate to handbook the company into its subsequent stage. The corporate spent virtually $30 million on advisors to stave off the activist investor.
Michael Kneeland, a used CEO of United Leases, will change into Gildan’s chair. The seven quite a couple of directors, including Chamandy, are expected to soon soak up their roles. Assorted foremost shareholders, including Anson Funds and Janus Henderson, backed Browning West’s push. The activist additionally won full toughen from proxy advisors Glass Lewis and ISS.
“I’m extraordinarily infected to achieve again as Gildan’s CEO and am pleased for the amazing toughen I primarily hang bought from both shareholders and workers all around the last six months,” Chamandy talked about in a statement.
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