By Adriano Marchese
Co-founder and former Chief Executive Officer of Gildan Activewear, Glenn Chamandy, on Monday denied media reports that he gave an ultimatum to the company’s board regarding strategy or potential acquisitions.
According to a report by Bloomberg News, Chamandy had pushed the board to back a strategy of big acquisitions before he was ousted from the company, citing Gildan director Luc Jobin.
In a statement on Monday, the ousted executive said that he didn’t give any ultimatum to Gildan’s board.
The move to sack Chamandy received a lot of push back from investors. Among them is Browning West, a Los Angeles hedge fund, which holds a nearly 4% stake in Gildan after building its position over several years, is calling to reverse the decision.
“This is a sideshow to distract from the reaction the shareholders have had with respect to the board’s handling of succession planning, in which I was not involved,” Chamandy said Monday.
Last week, Gildan Activewear made a surprise announcement that it appointed Vince Tyra to the role of chief executive to replace Chamandy. The company at the time didn’t disclose under what circumstances Chamandy had left.
In a follow-up statement on Dec. 11 by Chamandy, he responded that his contract was terminated without cause, citing a differing vision of the company’s path forward which differed from that of other board members.
Chamandy cofounded the Canadian apparel manufacturing company in Montreal alongside his brother Greg Chamandy, and served there for four decades, according to the statement.
Gildan manufactures basic, everyday apparel such as underwear and socks that it sells to wholesalers and retailers. Among its brands are American Apparel and Comfort Colors, as well as its namesake Gildan.
It also has an exclusive licensing agreement with Under Armour to distribute its socks in the U.S. and Canada. Competitors in the U.S. include Calvin Klein owner PVH and Hanesbrands, which owns Champion.
“I do believe, it is essential that a leadership transition be conducted in a manner consistent with Gildan’s successful track record… obviously considering shareholder engagement is integral to the decision-making process,” Chamandy said Monday.
Gildan wasn’t immediately available for comment.”
Write to Adriano Marchese at [email protected]
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