Gildan Activewear Inc., a leading Canadian clothing company, witnessed a significant share drop of up to 14%, the most substantial since March 2020, after an unexpected change in leadership. Co-founder Glenn Chamandy, who served as the chief executive officer for 40 years, departed amid apparent conflicts with the board. Vincent Tyra, a former executive at Fruit of the Loom, has been appointed as the new president and CEO.
The Montreal-based company, known for its «fit for print» T-shirts under the Gildan and American Apparel brands, experienced stock trading at C$44.42 in Toronto, reflecting a 10.5% decrease from the previous close.
Chamandy’s departure, met with gratitude from Chairman Donald Berg, raised questions as he received a notice of termination «without cause.» Differences in vision with other board members were cited as the reason for the exit.
The unexpected change is considered a result of disagreements over the timing of the transition. The board, engaged in succession planning, had focused on preparing for this shift, according to RBC Capital Markets analyst Sabahat Khan.
Vincent Tyra is set to assume the roles of president and CEO on February 12, 2024. Meanwhile, Craig Leavitt, a Gildan board member and former head of Kate Spade & Co., will act as interim CEO. The company’s market capitalization had grown to C$8.5 billion ($6.3 billion) by the previous Friday’s close, with a surge of nearly 34% since the start of the year.
