Canadian activewear Gildan's board rejects shareholder calls to reinstate CEO

Dec 20 (Reuters) - Canadian apparel maker Gildan Activewear's board on Wednesday backed its decision to remove Glenn Chamandy from the CEO role, after some big shareholders called for his return.

Several investors, including hedge fund manager Browning West and Oakcliff Capital, sent letters to the company's board expressing concerns over the leadership change as well as its invitation to a shareholder to join the board on certain conditions.

The board asked Chamandy to leave the company he co-founded on Dec. 11, without giving a specific reason. In its response to shareholder demands on Wednesday, Gildan's board cited his inability to find additional avenues of long-term organic growth.

The board also said that it was "disappointed in Chamandy's attempts to inflict the maximum amount of disruption to Gildan’s business in order to remain as CEO" and pointed to his October proposal "to pursue high-risk and highly dilutive multibillion-dollar acquisitions."

Chamandy, who was replaced by Vince Tyra last week, said in a statement on Monday that he had given "no ultimatum to Gildan's board with respect to any strategy or potential acquisitions."

Chamandy could not be reached for further comment.

It is a rare public spat in Canada between board and shareholders over a sudden ouster of a CEO.

Earlier this week, Gildan offered a board seat to Chris Shackelton, a co-founder of Coliseum Capital Management, which is one of its top shareholders, in return for its support to the company's slate of board nominees at each of its annual shareholder meetings in 2024 and 2025.

Shareholders Jarislowsky Fraser, Browning West and Oakcliff Capital did not immediately respond to Reuters requests for comment.

(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D'Silva)