By Adriano Marchese
Glenn Chamandy, the co-founder and former Chief Executive Officer of Gildan Activewear, has rejected recent media reports claiming that he issued an ultimatum to the company's board regarding strategic decisions and potential acquisitions.
According to a report by Bloomberg News, Chamandy had allegedly pressured the board to support a strategy of pursuing significant acquisitions before his departure from the company. Gildan director Luc Jobin was quoted as the source of this information.
However, Chamandy has now released a statement refuting these claims, asserting that he did not present any ultimatum to Gildan's board during his tenure.
The decision to oust Chamandy from his position has faced significant backlash from investors, most notably Browning West, a Los Angeles hedge fund. With a stake of nearly 4% in Gildan, Browning West has been vocal in calling for a reversal of the board's decision.
Chamandy, speaking on Monday, dismissed the allegations surrounding the ultimatum as a sideshow diverting attention from the shareholders' reaction to the board's handling of succession planning. He made it clear that he had no involvement in this matter.
Last week, Gildan Activewear surprised the market by announcing the appointment of Vince Tyra as the new Chief Executive Officer, replacing Chamandy. However, details surrounding Chamandy's departure from the company were not disclosed at that time.
Gildan Co-founder's Contract Terminated: A Different Vision for the Future
In a recent development, Gildan, the Canadian apparel manufacturing company, terminated the contract of its co-founder, Chamandy. The decision was made due to a divergence in the vision for the company's future when compared to other board members. Having served for four decades alongside his brother Greg Chamandy, Chamandy's departure marks a significant change for the company.
Gildan specializes in manufacturing basic, everyday apparel such as underwear and socks. It has established brands like American Apparel and Comfort Colors, and also distributes socks for Under Armour through an exclusive licensing agreement covering the U.S. and Canada. In the U.S., Gildan faces competition from PVH, the owner of Calvin Klein, and Hanesbrands, the company behind Champion.
Chamandy emphasized that a smooth leadership transition is crucial for maintaining Gildan's successful track record. He stressed the importance of shareholder engagement in the decision-making process. Unfortunately, Gildan was unavailable for immediate comment.
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