In the escalating power struggle at Gildan Activewear Inc., former CEO Glenn Chamandy receives unwavering support from Janus Henderson Group Plc. Portfolio manager and analyst Brian Demain and Tom Roller, representing Janus, with approximately 4.2% ownership of Gildan, assert the board’s error in dismissing Chamandy.
In a strongly-worded letter to the board on Monday, Demain and Roller demand the reinstatement of Glenn Chamandy as Gildan’s CEO. They stress that neglecting this reinstatement could expose shareholders to risks such as executive departures, loss of strategic insight, and weakened customer relationships.
Janus’s endorsement amplifies Chamandy’s position in the ongoing power struggle. Other major shareholders, collectively holding around 30% of shares, have also rallied behind Chamandy, intensifying the dispute with Gildan’s board.
Gildan Director Luc Jobin, in a Sunday interview, claimed Chamandy pressured the board for a high-risk acquisition strategy and delayed a succession plan. Jobin asserted that Chamandy threatened to leave if his demands were not met.
Chamandy, countering these claims in a Monday statement, emphasized that he issued «no ultimatum» regarding strategies or potential acquisitions.
This corporate conflict underscores the crucial role of strategic decisions and leadership stability in effective corporate governance. Stakeholders closely monitor the unfolding developments at Gildan Activewear Inc.
