April 13th, 2024

Browning West says current Gildan board cannot be trusted to oversee sale process

By The Canadian Press on March 20, 2024.

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

MONTREAL – A U.S. investor who is seeking to replace a majority of the directors at Gildan Activewear Inc. says the current board cannot be trusted to oversee a sale process for the company.

Gildan confirmed Tuesday that it has received a “non-binding expression of interest” from a potential purchaser that it did not name.

In response, the company’s board has formed a special committee of independent directors to consider the proposal and contacted other potential bidders.

Browning West says the sale process underscores its message to shareholders that meaningful change at the board is required immediately, even before the company’s annual meeting in May.

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

Browning West, with the support of Gildan’s largest shareholder Jarislowsky Fraser, wants to replace eight members of the Gildan board in a move to reinstate Chamandy.

This report by The Canadian Press was first published March 20, 2024.

Companies in this story: (TSX:GIL)

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