LOS ANGELES - Browning West, LP, a significant shareholder of Gildan Activewear Inc . (NYSE: NYSE:GIL) (TSX: GIL), owning about 5% of the company's outstanding shares, has publicly expressed dissatisfaction with the actions of Gildan's Board of Directors. The investment firm alleges that the Board leaked a regulatory letter to a Canadian news outlet as a publicity stunt, diverting attention from what Browning West perceives as the Board's failures, particularly during last year's CEO search process.
The firm's statement, issued on March 15, 2024, accuses the Board of resorting to "low-road tactics" in an attempt to silence shareholders. Browning West is pushing for the appointment of its own slate of independent director candidates at the upcoming Annual Meeting, claiming strong shareholder support for its course of action since December.
Browning West's criticism follows a March 13 press release where they urged shareholders to reject what they call the Board's intimidation tactics. The firm stands by its position that the current directors are focusing on shifting attention away from their alleged failures and the track record of value destruction under the leadership of the current CEO.
The press release also contains forward-looking statements regarding Browning West's intentions to exercise its rights as a shareholder and its plans to make changes to the Board and management. However, these statements come with a disclaimer acknowledging the risks and uncertainties that may prevent these expectations from materializing, including potential resistance from the company itself.
Browning West, based in Los Angeles, California, is known for its long-term, fundamental approach to investing, primarily in North America and Western Europe. The firm's capital base comprises foundations, family offices, and university endowments, which supports its focus on long-term value creation at its portfolio companies.
This news article is based on a press release statement from Browning West. The investment firm is advised by legal counsel Olshan Frome Wolosky LLP, Goodmans LLP, and IMK, with Longacre Square Partners as strategic advisor, Pelican PR for public relations, and Carson Proxy as proxy advisor.
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