LOS ANGELES - Investment firm Browning West, LP, holding approximately 5% of Gildan Activewear (NYSE:GIL) Inc.'s shares, alongside the company's co-founder and former CEO Glenn Chamandy, has issued statements regarding recent actions by Gildan's Board of Directors. The statements follow the resignation of the company's board leadership and criticize the board's decision to retain current CEO Vince Tyra.
Browning West and Chamandy have expressed dissatisfaction with the board's performance, highlighting a series of alleged failures including a flawed succession process and inadequate due diligence. They argue that the board's refusal to reinstate Chamandy as CEO, despite shareholder demand, illustrates a disregard for shareholder interests.
The investment firm contends that the board's recent addition of replacement directors does not address the company's core issues and that these new directors are less qualified than Browning West's proposed candidates.
The firm's representatives, Usman S. Nabi and Peter M. Lee, have emphasized the need for a board that supports Chamandy's return as CEO to implement a value creation plan they believe could significantly increase Gildan's stock price by the end of 2025. They have also questioned the board's commitment to Tyra, suggesting that it stems from a desire to avoid accountability.
Chamandy has stated his preference for a high-quality board that aligns with his vision for the company, citing the Browning West slate as possessing the necessary experience and expertise. He has emphasized the importance of having a chairman with a strong record as an operating CEO and chair, which he sees in Mike Kneeland, a member of the Browning West slate.
Browning West is campaigning to elect eight director candidates to Gildan's Board at the Annual Meeting of Shareholders scheduled for May 28, 2024. These candidates are presented as having proven track records in value creation and governance. Shareholders have been directed to Browning West's campaign website for further information on the slate and their operating plan.
The press release includes disclaimers regarding forward-looking information, outlining the uncertainties and risks associated with the firm's plans and proposals. Browning West has engaged legal and strategic advisors to support its campaign.
This news article is based on a press release statement from Browning West, LP.
InvestingPro Insights
In the midst of the boardroom tussle at Gildan Activewear Inc ., the company's financial metrics and management activities provide additional context for investors considering the firm's future. According to InvestingPro data, Gildan has a market capitalization of approximately $5.88 billion USD, reflecting its standing in the market.
The company's price-to-earnings (P/E) ratio stands at 11.61, which suggests a valuation that may be appealing to value-oriented investors, especially when considering the company's consistent dividend payments over the last 14 years.
InvestingPro Tips highlight that management has been actively repurchasing shares, a move that often signals confidence in the company's future prospects. Additionally, Gildan has raised its dividend for three consecutive years, demonstrating a commitment to returning value to shareholders. This could be particularly relevant given the current discussions around the company's leadership and strategic direction.
Investors interested in a deeper dive into Gildan's performance and management strategies can access additional InvestingPro Tips. There are 9 more tips available on InvestingPro, providing a comprehensive outlook on the company's financial health and market position. To explore these insights, visit https://www.investing.com/pro/GIL and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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