Gildan rejects shareholder call to reinstate Chamandy as CEO

Canadian apparel retailer Gildan Activewear board on Wednesday issued a letter to the shareholders stating reasons behind its decision to remove Glenn Chamandy from the CEO role.

The company’s letter follows after eight investors, including Browning West, Oakcliff Capital and Turtle Creek Asset Management sent letters to the company's board expressing concerns over removal of Chamandy as CEO and appointment of Vince Tyra as his replacement.

Gildan said in the letter that while “Chamandy had agreed to follow the original succession timeline, he later worked to entrench himself as CEO.”

“The most glaring example of that was his October 2023 proposal to the board that we should actively pursue, within weeks, high-risk and highly dilutive multi-billion-dollar acquisitions that would shift Gildan away from its core area of manufacturing experience,” the letter said.

The board added: “In addition, his request was to stay on as CEO for several more years to implement such a plan. If the board did not approve his timing, he told us repeatedly that he would leave the company in the near-term and sell all of his shares. The board is disappointed in Chamandy’s attempts to inflict the maximum amount of disruption to Gildan’s business in order to remain as CEO.”

Chamandy, however, said in a public statement issued on Monday that he had given "no ultimatum to Gildan's board with respect to any strategy or potential acquisitions".

“This is a sideshow to distract from the reaction the shareholders have had with respect to the board's handling of succession planning, in which I was not involved” he said.

Earlier this week, Gildan appointed Chris Shackelton, a co-founder of Coliseum Capital Management to its board. Coliseum also agreed an additional investment in Gildan and its support to the company's board nominees at each of its annual shareholder meetings in 2024 and 2025.