The leadership clash at Gildan Activewear Inc. intensifies as ousted CEO Glenn Chamandy responds to the board’s criticisms. Chamandy, who steered the Montreal-based clothing giant for two decades, expresses offense at the board’s actions and accuses them of divulging confidential company plans.
In a letter issued on Tuesday, Chamandy asserts, «The board’s self-serving motives, aimed at distracting from its own recklessness, have caused them to lose sight of what truly matters — the best interests of the company.» He emphasizes his disapproval of the board’s decision to weaponize strategic confidential information for their benefit.
Chamandy’s termination on December 10 sparked a governance battle, with investors holding over a third of the shares publicly opposing his firing and urging the board to reinstate him. The board counters, accusing Chamandy of jeopardizing the company’s future with an ambitious acquisition strategy and violating corporate information safeguarding policies.
In response, Chamandy criticizes the board for disregarding the impact on the company’s value and using confidential information to entrench itself in power. Gildan’s board has yet to respond to these latest remarks.
Investment firm Browning West LP, representing shareholders seeking board changes, pushes for a swift special shareholder meeting to vote on new directors. Alleging that the board aims to delay the meeting until the fall, Browning West expands its list of alternative director candidates, including former Nike Inc. Chief Risk Officer Michener Chandlee and Canadian National Railway Co. Chief Financial Officer Ghislain Houle.
Amid ongoing uncertainty, Browning West, backed by several shareholders, highlights the risk of permanent damage to Gildan stakeholders and urges a prompt resolution.