Gildan investors should back Browning and reinstate fired CEO, ISS says

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Gildan investors should back Browning: According to Institutional Shareholder Services Inc. (ISS), a proxy advisory service, Gildan Activewear Inc. shareholders are urged to support all eight board nominees, including the return of CEO Glenn Chamandy, which activist investor Browning West LP suggested. Browning West, which has been pushing for board changes at Gildan and owns 5% of the firm, has scored a significant victory with this recommendation.

 Browning West has been trying to get rid of the current board and put Chamandy back in charge for months. Internal disagreements on strategic direction and succession planning led to Chamandy’s dismissal in December.

 ISS praised Browning West’s arguments in its report to clients, calling them strong and arguing that the previous board should have their actions reversed.

 The American Apparel brand is owned by Gildan, a Montreal-based company that focuses on making affordable clothes for various stores, including Walmart Inc.

 Michael Kneeland, the present chair of United Rentals Inc., is leading Browning West’s slate of recommended board members. Kneeland is expected to take over as chair of Gildan if Browning West wins the upcoming shareholder vote on May 28.

 As stakeholders consider the points made by the present board and the activist investor, the shareholder vote’s result will have far-reaching consequences for Gildan Activewear Inc.’s future leadership and direction.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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