Gildan Activewear says former CEO failed to disclose ties with a shareholder
Jan 16 (Reuters) - Canadian apparel maker Gildan Activewear on Tuesday alleged that its former chief Glenn Chamandy failed to disclose certain fund investments and had an undisclosed relationship with a shareholder.
The remarks, that Gildan said underscores why the board "lost trust and confidence" in Chamandy, comes a day after new CEO Vince Tyra assumed his role and as the company battles activist investor pressure following the co-founder's sudden removal from the chief executive's position.
Chamandy invested in funds managed by a Gildan shareholder, whose senior executive also bought a property at Apes Hill, the private golf resort in Barbados owned by Chamandy, Gildan alleged, citing information it obtained by accessing the former CEO's files and electronic information.
"Chamandy appears to have treated Browning West differently than other Gildan shareholders," Gildan claimed, adding that the ousted CEO had hosted the co-founders of Browning West, and a number of the hedge fund's investors, on an exclusive visit to a Gildan facility in Honduras.
U.S.-based activist fund Browning West last week escalated its fight with the Gildan board to reinstate Chamandy by seeking to replace a majority of members and requested a special meeting to reconstitute the board.
The company said it would respond to the requisition in due course.
Browning West did not immediately reply to a Reuters request for comment. (Reporting by Savyata Mishra in Bengaluru; Editing by Shailesh Kuber)
