Browning West releases plan for Gildan to cut costs and grow market share

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MONTREAL — An activist investor seeking to reinstate Glenn Chamandy as chief executive of Gildan Activewear Inc. says it wants to reduce costs at the clothing manufacturer and increase its market share in a bid to boost its earnings and share price.

Browning West LP has nominated eight people including Chamandy for election to the Gildan board of directors at the company's annual meeting on May 28.

As part of its plan to improve operations at Gildan, Browning West would shift production of fashion basics products from Honduras to Bangladesh and use excess capacity in Honduras for fleece production. Gildan announced late last year that Chamandy would be replaced by Vince Tyra. The company has said it made the change because Chamandy had no credible long-term strategy for the company and had lost the board's trust and confidence.

Gildan said last month that it has formed a special committee of independent directors to consider a"non-binding expression of interest" from a potential purchaser that it did not name and contact other potential bidders. But Browning West, which holds about five per cent of the company's shares, has said the current board cannot be trusted to oversee a sale process for the company.The Canadian Press

 

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Browning West releases plan for Gildan to cut costs and grow market shareAn activist investor seeking to reinstate Glenn Chamandy as chief executive of Gildan Activewear Inc. says it wants to reduce costs at the clothing manufacturer and increase its market share in a bid to boost its earnings and share price.
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