Gildan accuses ex CEO of close relationship with shareholders calling for his return

MONTREAL Gildan Activewear Inc. is accusing its recently terminated CEO of having inappropriately close relationships with some of the shareholders calling for his reinstatement. In a release Tuesday, the company said ex CEO Glenn Chamandy failed to disclose that he invested in funds managed by an unnamed Gildan shareholder that is now calling for his return to the apparel company.

Gildan says Chamandy also seems to have a closer relationship with Browning West than he does with other shareholders, resulting in special treatment. The company describes Browning West as an "activist hedge fund" leading an "aggressive and misleading campaign" to reinstall Chamandy as CEO.

Gildan also accused Chamandy of being distracted from his post as CEO by personal pursuits, including the development of a luxury golf resort in Barbados. The company says Chamandy was rarely in the office, held few senior management meetings and "never bothered" to visit Gildan's newest manufacturing plant.

This report by The Canadian Press was first published Jan. 16, 2024. Companies in this story: (TSX:GIL).