Gildan Activewear comments on former CEO
by CM Staff
The Company will continue to update Gildan shareholders on any significant developments in these matters.
MONTREAL — Gildan Activewear Inc. provided further information with respect to Glenn Chamandy’s conduct around the time of his removal as CEO on December 10, 2023. The information reportedly sheds new light on at least one undisclosed relationship between Mr. Chamandy and a shareholder who is now calling for his reinstatement, and the Company is looking into others.
The Board has stated that it lost confidence in Mr. Chamandy. This new information, much of it obtained by accessing Mr. Chamandy’s files and electronic information following his departure, underscores that view. Mr. Chamandy’s actions with the Board are further indication that new leadership was required at Gildan, according to Gildan Activewear.
Gildan wrote a statement for its shareholders:
“In addition to rarely being in the office, holding few senior management meetings and never bothering to visit the Company’s newest manufacturing plant, Gildan has now learned that Mr. Chamandy sent on average no more than a handful of work emails a day and had few business-related meetings diarized on his calendar. Mr. Chamandy failed to disclose that he had invested in funds managed by a Gildan shareholder who has now come out in support of reinstalling Mr. Chamandy as CEO. A senior executive of that shareholder also purchased a multi-million-dollar property at Apes Hill, the private golf resort in Barbados owned by Mr. Chamandy.
Mr. Chamandy also seems to have a close relationship with Browning West, the activist hedge fund now leading the aggressive and misleading campaign to reinstall him as CEO. He was invited to be one of the guest speakers at the hedge fund’s February 2023 Investor Day, and while Browning West has been invested in Gildan for years, Mr. Chamandy appears to have treated Browning West differently than other Gildan shareholders.
For example, on November 8, 2023, just a week after Mr. Chamandy proposed his high-risk acquisition plan to the Board and was pressing them to retain him as CEO, he welcomed Usman Nabi and Peter Lee, the co-founders of Browning West, and a number of Browning West investors, on an exclusive visit to the Gildan manufacturing plant in Honduras.”
The Company will respond to the requisition in due course.
The Company will continue to update Gildan shareholders on any significant developments in these matters.
