Gildan board resigns, clearing the way for Glenn Chamandy to retake control of clothing company

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Gildan News

Board,Ceo,Gildan

Former CEO’s return marks end to boardroom battle that began when he was dismissed in December over succession issues

The board of Gildan Activewear Inc. resigned on Thursday evening, paving the way for former chief executive Glenn Chamandy to retake the helm of one of country’s largest clothing manufacturers with backing from activist fund manager Browning West.

In the past week, shareholder advisory companies Institutional Shareholder Services Inc. and Glass Lewis recommended investors back Browning West’s bid to bring back Mr. Chamandy by voting for the fund manager’s slate of eight Gildan directors. Those eight directors became the new board on Thursday evening.

Mr. Chamandy is expected to move forward with a strategy aimed at increasing GIldan’s international sales, along with share buybacks funded in part with increased borrowing. For the former CEO, the return to the top job cannot come soon enough. Over the past six months, Gildan’s board turned over, with seven directors departing, including the former chair, and five new directors stepping up. Gildan’s directors consistently said Mr. Chamandy acted to entrench himself as CEO by sabotaging the succession process and forced them to terminate him by proposing several risky multi-billion-dollar takeovers that he said only he could oversee.

 

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