Apparel maker Gildan recommends two Browning West nominees to board (updated)

Gildan Activewear

22/04/2024 23:09

(Adds response from Browning West in paragraphs 5 & 6)
       April 22 (Reuters) - 
    Canada's Gildan Activewear  GIL.TO   GIL.N  on Monday
recommended the election of two nominees of U.S.-based activist
fund Browning West to the company's board, ahead of its annual
and special shareholder meeting on May 28.
    The clothing maker's board has been clashing with Browning
West, which owns 5% of Gildan, following the ouster of
co-founder and CEO Glenn Chamandy in December. 
    In January, Browning West escalated its fight with Gildan,
expanding its slate to eight candidates from five and called an
annual and special shareholder meeting to replace a majority of
its board members and reinstate Chamandy as CEO.
    On Monday, the board recommended the election of Browning
nominees Karen Stuckey and J.P. Towner. It also appointed five
new independent directors to its board effective May 1.
        "While we are gratified that every single incumbent
director responsible for the board's many failures is stepping
aside, we are disappointed that it is due in part to the board's
relentless focus on protecting (incumbent CEO) Vince Tyra to
avoid accountability," Browning West said in a statement.
        "It is clear that the newly announced directors are
objectively less qualified than Browning West's director
candidates," it added.
    In March, Gildan had said its board decided to put the
company up for sale and is in talks with multiple bidders.
    The company added on Monday that external interest in an
acquisition persists and the process is ongoing. 

 (Reporting by Annett Mary Manoj and Granth Vanaik in Bengaluru;
Editing by Krishna Chandra Eluri and Shailesh Kuber)
 ((AnnettMary.Manoj@thomsonreuters.com;))