April 16th, 2024

Gildan Activewear shops for competing offers after potential buyer emerges

By The Canadian Press on March 19, 2024.

The Gildan logo is seen outside their offices in Montreal, Monday, Dec. 11, 2023. THE CANADIAN PRESS/Christinne Muschi

MONTREAL – Gildan Activewear Inc. says it is entertaining offers for the company business after seeing interest from at least one potential buyer.

The embattled Montreal-based clothing manufacturer says the company received a non-binding expression of interest from a potential purchaser that it did not name.

Spokesman Simon Beauchemin says the company’s board formed a special committee of independent directors to consider the proposal and determined it was in Gildan’s best interests to contact other potential bidders and try to maximize the value of a possible sale.

He says several parties the committee reached out to have expressed an interest in a potential friendly transaction with Gildan, though a sale won’t necessarily result.

The development comes as Gildan has been embroiled in a fight over who should lead the firm since it announced late last year that co-founder and then-chief executive Glenn Chamandy would be replaced as CEO by Vince Tyra.

While Gildan’s executives claimed Chamandy had no credible long-term strategy and had lost the board’s trust, a group of the company’s shareholders insist he was the superior leader and have called for his return.

This report by The Canadian Press was first published March 19, 2024.

Companies in this story: (TSX:GIL)

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