The CEO and board of directors at Gildan Activewear Inc. have resigned ahead of the company’s annual meeting on Tuesday, paving the way for the company’s co-founder to return as chief executive.
Several major Gildan shareholders have been attempting to have the clothing maker’s former CEO Glenn Chamandy reinstated since his ouster last year to make way for Vince Tyra.
At the time, the company said it made the swap because Chamandy had no credible long-term strategy for the company and had lost the board’s trust and confidence.
Activist shareholder Browning West, with the support of other shareholders, has been campaigning for Chamandy’s return and proposed a new slate of board directors for election at the company’s annual meeting next week.
The departure of the board and Tyra ahead of the meeting is an apparent concession that a majority of shareholders favoured Browning West’s slate — and Chamandy — instead.
The outgoing board also says it ended previously announced discussions about a potential sale of the company.
“Shareholders have made their views clear as we approach the (annual meeting),” Gildan said in a press release Thursday evening. “The outgoing directors believe that it was in the best interests of all Gildan stakeholders for them to resign and not stand for election … allowing the new board to be seated so that it can oversee the company in the most orderly and efficient manner.
“The outgoing directors wish the new directors, the management team, Gildan’s 45,000 employees, and its shareholders success in the future.”
This report by The Canadian Press was first published May 23, 2024.
Companies in this story: (TSX:GIL)
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