More of Gildan Activewear’s shareholders are calling on the board of directors to reinstate the ousted Glenn Chamandy as CEO, including its largest shareholder, according to statements sent to Fashion Dive.
Jarislowsky Fraser Ltd., which owns 7.2% of Gildan shares, according to data from Bloomberg, called on the apparel company’s board to ask for the resignation of its chairman, Donald Berg, in addition to reinstating Chamandy. In its statement, Jarislowsky said Chamandy could mentor internal candidates as part of a succession plan “culminating in an orderly transition of leadership and ensure the long-term success of the company.”
Last week, Gildan terminated its co-founder Chamandy, who had been CEO for approximately 20 years. In his own statement, Chamandy said the move was without cause. In his place, the apparel company named Vince Tyra president and CEO, beginning on Feb. 12, 2024. Tyra was a former executive for apparel companies Fruit of the Loom and Broder Brothers, now Alphabroder.
Following the leadership change, two shareholders, Turtle Creek Asset Management and Browning West, LP, asked the board to reinstate Chamandy, and Browning also called for Berg’s dismissal. Browning questioned the track record of Tyra, saying he had “limited manufacturing experience and a record of value destruction.”
Tyra’s experience was also part of Jarislowsky’s letter.
“Further, the abrupt termination of Mr. Chamandy at age 61 to bring on a 58-year-old executive to lead the company into the next stage of its evolution and growth is concerning,” Jarislowsky wrote in its statement. “We believe that the board's press release related to Mr. Tyra’s track record is misleading to shareholders, and that the decision lacked sufficient due diligence when assessing Mr. Tyra’s performance record. He has not worked in the apparel industry since 2005 and lacks the relevant manufacturing expertise which is the core competitive engine at Gildan.”
Tyra currently works for Houches Industries as senior vice president of corporate strategy and mergers and acquisitions. That company has holdings in the construction, manufacturing, retail, healthcare and insurance spaces. Prior to that, he was intercollegiate athletics director at the University of Louisville.
Cooke & Bieler, which owns about 6% of Gildan’s shares, also is backing the return of Chamandy, per Bloomberg.
Pzena Investment Management, which owns more than 10 million shares in Gildan, joined the other firms in the call to reinstate Chamandy, saying Chamandy’s vision had “been instrumental in designing and building Gildan’s low-cost, vertically-integrated manufacturing operation, which has been the backbone of the company’s success.”
On Monday, Anson Funds Management LP also joined the call to bring back Chamandy. In its statement, it questioned the board’s succession planning process, saying its actions resulted in “an incredibly value-destructive distraction that must be immediately addressed.”
A Gildan spokesperson didn’t immediately respond to Fashion Dive’s request for comment.
Gildan is a manufacturer of basic apparel, making activewear, underwear and socks. It works with wholesale distributors, screen printers and embellishers. It also owns American Apparel, Comfort Colors, Gold Toe and Peds and holds a licensing agreement for Under Armour socks in the U.S. and Canada.
