Gildan CEO, board resign ahead of shareholder vote, paving way for ex-CEO’s return

The CEO and board of administrators at Gildan Activewear Inc. have resigned forward of the corporate’s annual assembly on Tuesday, paving the way in which for the corporate’s co-founder to return as chief govt.

Several main Gildan shareholders have been trying to have the clothes maker’s former CEO Glenn Chamandy reinstated since his ouster final 12 months to make approach for Vince Tyra.

At the time, the corporate stated it made the swap as a result of Chamandy had no credible long-term technique for the corporate and had misplaced the board’s belief and confidence.

Activist shareholder Browning West, with the assist of different shareholders, has been campaigning for Chamandy’s return and proposed a brand new slate of board administrators for election on the firm’s annual assembly subsequent week.

The departure of the board and Tyra forward of the assembly is an obvious concession {that a} majority of shareholders favoured Browning West’s slate — and Chamandy — as a substitute.

The outgoing board additionally says it ended beforehand introduced discussions a couple of potential sale of the corporate.

“Shareholders have made their views clear as we approach the (annual meeting),” Gildan stated in a press launch Thursday night. “The outgoing administrators imagine that it was in one of the best pursuits of all Gildan stakeholders for them to resign and never stand for election … permitting the brand new board to be seated in order that it could possibly oversee the corporate in probably the most orderly and environment friendly method.

“The outgoing directors wish the new directors, the management team, Gildan’s 45,000 employees, and its shareholders success in the future.”

This report by The Canadian Press was first printed on May 23, 2024.