In a surprising development, two major investment firms, Browning West and Turtle Creek Asset Management, are strongly contesting the decision of Gildan Activewear Inc. to terminate Chief Executive Officer Glenn Chamandy. These influential firms, holding over 7% of the company’s shares, have issued letters to Gildan directors, urging a reconsideration of Chamandy’s removal.
Browning West has raised concerns about the appointment of Vincent Tyra, the chosen successor to Chamandy and a former executive at Fruit of the Loom. The firm criticized the flawed CEO search process, questioned Tyra’s alleged history of value destruction, and expressed doubts about his qualifications for managing a large-scale operation like Gildan.
Both investment firms are advocating for Chamandy’s reinstatement and expressing dissatisfaction with the current board’s decisions. Browning West has gone further by suggesting the removal of Chairman Donald Berg and hinting at the possibility of requisitioning a shareholders’ meeting to replace the board.
Since the announcement of Chamandy’s departure on December 11, Gildan’s shares have witnessed an 11% decline. The company, renowned for T-shirt manufacturing and owning the American Apparel brand, commands a market value of approximately C$7.6 billion ($5.7 billion).
RBC Capital Markets analyst Sabahat Khan noted that the CEO change was prompted by a «somewhat of a disagreement» regarding the timing of succession planning. Gildan has not yet responded to requests for comments on the unfolding situation.
