The recent leadership change at Gildan Activewear Inc. has brought to light a clash between former CEO Glenn Chamandy and the board over strategic decisions. Chamandy’s departure was accompanied by revelations of his push for substantial acquisitions, outside Gildan’s core manufacturing focus. This move, revealed by Gildan Director Luc Jobin, sparked disagreements due to the perceived high risk and dilution to shareholder value. The board’s unexpected decision has triggered strong opposition from major investors, including Jarislowsky Fraser Ltd. and Browning West LP, collectively holding a significant 25% of Gildan’s shares. As the board faces scrutiny, the appointment of Chris Shackelton from Coliseum Capital Management as a director aims to consolidate support amid the ongoing power struggle.
