LOS ANGELES - Browning West, LP, a significant shareholder in Gildan Activewear (TSX:GIL) Inc . (NYSE: NYSE:GIL) (TSX: GIL), has publicly urged the apparel company's board to initiate a leadership change. The investment firm, which holds around 5% of Gildan's shares, called for an orderly resignation process for the CEO, Glenn Chamandy, and a substantial reconstitution of the board.
The push for management changes follows reports and an independent research study indicating that the board may have overlooked alleged inappropriate conduct by Mr. Chamandy during his tenure at Broder Bros. Browning West questions the board’s diligence in the CEO selection process and the potential conflicts of interest and risks posed to Gildan stakeholders.
Browning West has refuted any involvement in the independent research report and has threatened legal action against any parties claiming otherwise. The firm accuses the board of attempting to shift blame onto its shareholders, who are entitled to scrutinize the CEO's qualifications and the board's decisions.
The investment firm has proposed new director candidates and is advocating for their appointment to the board. This move is seen as a step towards resolving the current situation and refocusing on the company's growth and shareholder value creation.
The company's board has not publicly responded to Browning West's statement. The information presented is based on a press release statement from Browning West, LP.
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