Gildan Activewear sets May 28 date for shareholder meeting after Browning West request

Gildan Activewear Inc. has set May 28 for a shareholder meeting following a request by U.S. investor Browning West which is seeking to replace a majority of the company’s board of directors and bring back founder Glenn Chamandy as chief executive.

The Montreal-based clothing manufacturer also said on Jan. 29 that it will challenge the validity of the Browning West special meeting request in a Quebec court.

Gildan alleges the fund broke U.S. antitrust rules when it increased its stake in the company to the point where it could request a shareholder meeting, something Browning West denies.

The company has been embroiled in a fight over who should lead the company since it announced late last year that Chamandy would be replaced as chief executive by Vince Tyra.

Several Gildan shareholders, including the company’s largest, Jarislowsky Fraser, have sought to have Chamandy reinstated.

Gildan said it has heard from numerous shareholders, both those who have indicated preliminary support for Browning West and those who have not in recent weeks.

“The board and shareholders are aligned in the view that a speedy resolution of this unnecessary proxy contest is in the best interests of the company and its shareholder owners,” the company said in statement.

“The company also agrees with shareholders who hold the view that a meeting is not required to resolve this matter.”

Browning West is asking Gildan shareholders to vote to remove eight Gildan directors including chair Donald Berg and replace them with its own nominees who would reinstate Chamandy.

The Gildan board has said Chamandy had no credible long-term strategy for the company and had lost the board’s trust and confidence in his ability to grow an increasingly complex organization.

In response, Chamandy has said he presented a comprehensive long-range plan in October that showed meaningful organic growth prospects for Gildan over the next five years.