Gildan investor pulls meeting request but boardoom scrap rages on
BNN Bloomberg
A top shareholder of Gildan Activewear Inc. withdrew its request for a special shareholder meeting, but will still press ahead with its campaign to replace most of the board of the Canadian clothing manufacturer.
Los Angeles-based Browning West LP, which holds a five per cent stake in Gildan, said it will simply try to get its proposed slate of eight new board members elected at Gildan’s May 28 annual meeting. The investment firm is seeking to oust current directors and reinstate longtime Chief Executive Officer Glenn Chamandy, who was fired in December, prompting a corporate governance row.
Browning West, which is supported by several large shareholders in backing Chamandy, tried to force the special meeting to get a relatively quick vote on a new board.
But Gildan, the Montreal-based company that owns the American Apparel brand, launched a legal challenge Monday in a Quebec court, arguing that Browning West broke U.S. regulations when it bought more shares last month.
