MONTREAL — Gildan Activewear Inc. says its plan to replace co-founder Glenn Chamandy as chief executive was a multi-year, careful and deliberate process that included him when it was appropriate to do so.
Chamandy said last week that he was terminated without cause after four decades with the company, including nearly 20 years as president and CEO.
Several large shareholders have called for his reinstatement.
In a statement, Gildan chair Donald Berg said Monday the company's succession planning resulted in a well-thought-out rationale for the board’s unanimous decision to appoint Vince Tyra as the new CEO.
According to multiple media reports, the decision to replace Chamandy came after he gave an ultimatum to the board over its acquisition strategy.
However, Chamandy said Monday that he did not give an ultimatum to the board with respect to any strategy or potential acquisitions.
"This is a sideshow to distract from the reaction the shareholders have had with respect to the board's handling of succession planning, in which I was not involved," he said.
Berg's comments came as Gildan announced an agreement with Coliseum Capital Management that will see the investment firm support the company's board nominees for its 2024 and 2025 annual meetings.
Coliseum holds a 6.6 per cent stake in Gildan, according to financial markets data firm Refinitiv. In connection with its support agreement with Gildan, the investment firm plans to increase its holdings in the company.
Chris Shackelton, a co-founder and managing partner of Coliseum, was also appointed to Gildan's board of directors.
"Coliseum’s intent to further invest in Gildan is a testament to its belief in the Company’s leadership, board, strategic plan and capability to deliver value," Berg said in a statement.
This report by The Canadian Press was first published Dec. 18, 2023.
Companies in this story: (TSX:GIL)
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