Canadian apparel maker Gildan's board resigns, ex-CEO Chamandy returns (updated)

Gildan Activewear

23/05/2024 23:15

(Adds background throughout, share movement in paragraph 2)
       May 23 (Reuters) - Canadian apparel maker Gildan
Activewear  GIL.TO  said on Thursday its board of directors has
resigned and its CEO Vince Tyra has stepped down to be replaced
by former top boss Glenn Chamandy.
    The company's U.S.-listed shares rose 2.5% in extended
trading. 
    The outgoing directors appointed the nominees of activist
investor Browning West to the board and ceased discussions on
the previously announced sale process.
    The clothing maker's board has been clashing with Browning
West and seven other investors that own a total of 33% stake in 
the company following the ouster of co-founder Chamandy in
December.
    The board asked Chamandy to leave without offering a
specific reason, but later cited his inability to find
additional avenues of long-term organic growth.
    "Notably, preliminary results indicate that an overwhelming
majority of shares have been voted in support of Browning West's
full eight-member slate prior to the Board's resignation," the
U.S.-based Browning West, which owns 5.7% of Gildan, said. 
    "We also recognize that this is the first time in more than
a decade that an overwhelming majority of shareholders and all
leading proxy advisory firms – ISS, Glass Lewis and Egan Jones –
supported a full reconstitution of a board of directors."
    
     

 (Reporting by Seher Dareen in Bengaluru; Editing by Arun
Koyyur)
 ((Seher.Dareen@thomsonreuters.com; If in India call +91 74832
70128;))