UPDATE 2-Browning West pushes to replace majority of board at Canadian activewear Gildan
(Adds response from Gildan in paragraph 6)
Jan 9 (Reuters) - U.S.-based activist fund Browning West on Tuesday escalated its fight with Gildan Activewear by seeking to replace a majority of its board members after the Canadian apparel maker fired the co-founder and Chief Executive Officer Glenn Chamandy.
The Los Angeles-based investment firm in a letter to Gildan's shareholders expanded its list of board candidates to eight from five and requested a special meeting to be "held without delay" to reconstitute the company's board.
Browning West, which owns 5% of Gildan's outstanding shares, said on Tuesday it had learned that the board "intends to employ extreme delay tactics" by pushing its annual meeting of shareholders or any other special meeting to late 2024.
The activist investor, along with other big shareholders, has called to reinstate Chamandy as the CEO and terminate the appointment of new CEO Vince Tyra.
"Browning West and eight other independent shareholders, representing approximately 35% of Gildan's outstanding shares, have expressed substantial concern over the Board's actions and called for the immediate reversal of the board's significant missteps," the activist investor said in a statement.
Gildan told Reuters in an emailed response that "the board of directors continues to view the efforts of Browning West and Mr. Chamandy as baseless, public misinformation tactics," adding that it would respond to the letter after reviewing it.
On Monday, Gildan's board said it was investigating "new information" around Chamandy's departure, including his engagement with "certain shareholders" before his termination.
Gildan's shares fell more than 10% in December, as the tussle between the board and the shareholders unfolded. (Reporting by Juveria Tabassum; Editing by Shailesh Kuber and Shweta Agarwal)
