Without refuting the allegations against him, Glenn Chamandy says he is disappointed and offended by the open letter published Monday by Gildan’s board of directors in which it is notably mentioned that he gradually withdrew as CEO , focusing more on his personal outside activities, including developing a golf resort in Barbados.
“I am deeply disappointed by the actions of Gildan’s board of directors,” said the clothing maker’s co-founder and former CEO in a public statement on Tuesday.
“I am offended by what appears to be a premeditated effort to publicly undermine my record and, what is even worse from a corporate perspective, is that the board’s negligent behavior also tarnishes the reputation of a big Society. »
Glenn Chamandy argues that the board’s “self-serving” motivations, designed to distract from its own imprudence, led it to lose sight of what was truly important: the best interests of the company, its employees, its customers and its shareholders.
“I find it particularly distressing that the board of directors decided to use confidential strategic information of the company for nefarious purposes with the sole aim of entrenching its power, without worrying about the impact on the value of the company. business. »
Glenn Chamandy was removed as CEO on December 10. The board justified its decision by differences related to the succession plan and by emphasizing that Glenn Chamandy wanted to move forward with a risky multi-billion dollar acquisition strategy.
Glenn Chamandy believes that contrary to the board’s claims, the long-term plan presented on October 30 showed significant organic growth prospects for Gildan over the next five years and was supported by our management team.
The American institutional shareholder Browning West is also requesting the holding, without delay, of an extraordinary meeting of shareholders to reconstitute the majority of Gildan’s board of directors.
Browning West is now seeking a change in the majority of directors and says it has learned that the board intends to employ extreme tactics by postponing the next annual meeting of shareholders and any requested special meetings until the fall.
Browning West also says it is concerned that the board is moving up the start date for Vincent Tyra – the board-appointed successor to Glenn Chamandy – and is troubling that the board is deliberately trying to diminish the company’s results and growth prospects. business.
The American investment firm has expanded its list of directors candidates and wants to replace 8 of the 11 directors in office. The desired departures are those of Donald Berg, Maryse Bertrand, Marc Caira, Shirley Cunningham, Charles Herington, Luc Jobin, Craig Leavitt and Chris Shackelton.
Browning West proposes to install on the board Glenn Chamandy, the former CEO of United Rentals, Michael Kneeland, a former Nike executive, Michener Chandlee, the finance chief of CN, Ghislain Houle, the former president of Mobilia , Mélanie Kau, Browning West co-founder Peter Lee, former Walmart executive Karen Stuckey and Rona CFO J.P. Towner.
For Browning West, which says it holds an approximate 5% stake in Gildan, holding a special meeting quickly is critical because with each passing day, the uncertainty risks causing permanent damage to Gildan’s stakeholders.
About ten independent institutional shareholders, controlling approximately 35% of Gildan’s shares, have publicly expressed their opposition to the dismissal of Glenn Chamandy over the past month.
It had not yet been possible to obtain a reaction from Gildan at the time of publication.
