On 29th December, Browning West, a US-based activist fund, declared its intent to secure five seats on the board of Canadian apparel manufacturer Gildan Activewear. This move follows the abrupt removal of Gildan’s co-founder and former CEO, Glenn Chamandy.
Browning West, which holds a 5 per cent stake in Gildan, expressed its desire to oust five existing directors from the board, proposing replacements that include a former CEO from United Rentals and a former CFO from Dollarama.
Chamandy’s unjustified dismissal prompted Browning West to stand for his reinstatement if its candidates win. The activist fund opposes the selection of new CEO Vince Tyra. Gildan, however, stands firm in supporting its decision, leading to a public dispute in Canada between shareholders and the board.
Browning West shared in a letter that the “Board has ignored the independent feedback of nine separate investors who collectively hold more than 35 per cent of Gildan’s outstanding shares,”
emphasising the board’s dismissal of feedback. This highlights a contentious chapter in Gildan’s corporate governance.
