An activist investor seeking to reinstate Glenn Chamandy as Gildan CEO says he wants to cut the clothing maker’s costs and increase its market share in a bid to boost its profits and stock price.
Browning West has nominated eight people, including Mr. Chamandy, to Gildan’s board of directors ahead of the company’s annual meeting on May 28.
As part of its plan to improve Gildan’s business, Browning West would move manufacturing of fashion staples from Honduras to Bangladesh and use excess capacity in Honduras for fleece products.
Gildan announced late last year that Mr. Chamandy would be replaced by Vince Tyra. The Montreal company said it made the change because Mr. Chamandy did not have a credible long-term strategy for the company and had lost the confidence of the board of directors.
Gildan said last month it had formed a special committee of independent directors to review a “non-binding indication of interest” from a potential buyer it did not name and contacted other potential bidders.
But Browning West, which owns about 5 percent of the company’s stock, said the current board could not be trusted to oversee the company’s sale process.