Gildan Sportswear confirmed on Friday the return of its founder at the head of the company, the day after the wholesale resignation of members of the board of directors and the departure of the president and CEO in recent months.
The Montreal clothing manufacturer announced the appointment of Glenn Chamandy as CEO, after he was appointed the day before to the board of directors. The company also said Michael Kneeland is becoming non-executive chairman.
Mr. Chamandy therefore takes over the company, six months after being replaced by Vince Tyra. At the time, the company said it made the change because Mr. Chamandy did not have a credible long-term strategy for the company and had lost the trust of the board.
Shareholder Browning West opposed the move and sought to reinstate Mr. Chamandy as president and CEO.
To achieve this, the American investment firm undertook a campaign to replace eight of the 12 members of Gildan’s board of directors with its own candidates, including Mr. Chamandy.
With days before the annual shareholder meeting, the manufacturer announced Thursday that all members of the outgoing board had resigned and had appointed Browning West’s eight nominees to the board.
“I am extremely excited to once again become CEO of Gildan and am very pleased with the incredible support I have received from shareholders and employees over the past six months,” commented Mr. Chamandy in a press release.
“I am proud of our dedicated employees who worked hard and remained focused during this tumultuous time,” he added.
Gildan said it will still hold its annual shareholder meeting scheduled for Tuesday. At the time of the meeting, only eight candidates, or all the current directors, including Mr. Chamandy, will seek a directorship, the company indicated.
Gildan’s share price on the Toronto Stock Exchange jumped 5.3% percent on Friday following Thursday’s announcement early in the evening. The stock closed Friday’s session at $51.41, up $2.60.