Gildan’s newest press release pulls no punches, in their Board’s “open letter to stockholders” they issue a surprisingly harsh rebuke to investor efforts to re-instate Glenn Charmandy as CEO. They portray Mr. Charmondy as disengaged, as having no vision for the future of the company, and involved in personal (including a golf resort in Barbados) and business efforts (unnamed suggested acquisitions) away from Gildan’s core business.
This comes on the heels of investor group Browning West submitting what Gildan calls a “misguided campaign to reinstall Glenn Chamandy as CEO.” In addition to the attacks on Charmandy, Gildan defends their choice of new CEO, Vince Tyra. They go into some details on Tyra’s role in Fruit of the Loom’s poor performance (they say he helped save the company and prepared it for sale to Berkshire Hathaway) and his success at Alphabroder.
Gildan stock price has fallen since Charmandy’s ouster from $37.21 to $31.31. However, the price is only 2% down from six months ago.
The direction of this giant in the garment industry surely bears following, as it appears the leadership of the company is far from settled.