Gildan Activewear has confirmed its support for newly appointed CEO, Vince Tyra, after former chief Glenn Chamandy refused to comply with the company's succession plan. In a letter from the board on Wednesday, it was made clear that Chamandy had failed to find additional paths of growth, leading to a loss of confidence from the board. Chamandy had proposed pursuing multibillion-dollar acquisitions, a move that would divert the company from its core area of manufacturing expertise. The board had already initiated a succession process for Chamandy two years prior, and in September, Tyra was selected as the new CEO.
While Chamandy initially agreed to follow the original succession timeline, he later worked to solidify his position as CEO. He proposed staying on for several more years to implement the acquisition plan. Tyra officially took over as CEO last week, although the details surrounding Chamandy's departure were not disclosed.
Chamandy, who co-founded the Canadian apparel manufacturing company, stated that his contract was terminated without cause. According to him, his vision for the company's future differed from that of other board members. In response to opposition from some investors, including Browning West, a Los Angeles hedge fund with a stake of 4.8%, which is calling for Chamandy's reinstatement, the board reiterated its decision to hire a new CEO. The board believes that Gildan requires fresh leadership with new ideas and different skills to navigate the challenges and opportunities ahead.
Despite the controversy surrounding Chamandy's departure, Gildan Activewear is confident in its choice of Vince Tyra as the company's new CEO. Through this transition, Gildan remains focused on driving future success and maintaining its position as an industry leader.
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