After a week of turmoil at Gildan Activewear, Inc. with the ouster of company Founder and CEO Glenn Chamandy and pushback from at least two large investors, Gildan found support elsewhere on Monday, announcing an agreement with Coliseum Capital Management, LLC, under which Coliseum will support Gildan’s full slate of Board nominees at each of the 2024 and 2025 Annual Meetings of Shareholders.
Coliseum also intends to invest further in Gildan through market purchases during insider open window periods. Additionally, Co-founder and Managing Partner Chris Shackelton will join Gildan’s Board of Directors, effective December 17.
The development takes place after the Canadian investment management firm Turtle Creek Asset Management and Browning West, both longtime shareholders in Gildan, on December 15, issued a letter to Gildan’s Board urging it to reverse its termination of Glenn Chamandy and reappoint him as CEO of the company, whose departure as CEO was announced on December 11.
Shackelton said, “It is a privilege to serve on this Board and represent shareholders at this critical juncture. The Coliseum team has long been impressed by Gildan’s business. This agreement is a clear reflection of our conviction in the company’s strategy, leadership, board, and bright future. Gildan is remarkably well-positioned, and I look forward to helping the company execute its growth strategy and drive meaningful shareholder value creation.”
Donald C. Berg, chair of Gildan’s Board of Directors, said, “We appreciate Coliseum’s long-standing partnership, engagement, and alignment to support our mutual goal of enhancing long-term shareholder value. 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.”
“We are delighted to welcome Chris Shackelton to Gildan’s Board of Directors. He is a highly experienced director and successful investor whom we believe will further strengthen the Board for the benefit of all shareholders,” said Berg.
Berg took the opportunity to correct misinformation about the Board’s succession plans that had been publicly disseminated. “Our succession plan has been a multi-year, careful, and deliberate process which included the former CEO at appropriate times throughout the process. It resulted in a well-thought-out rationale for the Board’s unanimous decision to appoint Vince Tyra as the new CEO. With the support of one of our largest shareholders, we will continue our outreach to other shareholders to ensure the facts and conclusions surrounding the succession process are transparent, as well as the Board’s confidence in Gildan’s trajectory,” concluded Berg.
Coliseum agreed to abide by certain customary standstill and voting commitments in connection with the agreement.
Photo courtesy of Gildan Activewear
