Gildan says it’s evaluating potential bids as boardroom fight simmers

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Gildan says it’s evaluating potential : The American Apparel brand is owned by Gildan Activewear Inc., a Canadian clothing manufacturer. The company claims to have “several” interested parties looking to acquire the brand amicably.

In an email statement, spokesperson Simon Beauchemin stated that the Montreal-based company has established a special board committee to assess possibilities, including the possibility of acquiring Gildan. A source close to the situation said that Gildan has sought counsel from RBC Capital Markets, Canaccord Genuity Group, Goldman Sachs.

In response to the application, “the special committee, with the assistance of its financial advisors, conducted targeted outreach to a small number of reputable potential counterparties,” he stated.

Beauchemin went on to say, “Expressing an interest in considering a potential friendly transaction with Gildan” was one of the reasons why some of those possible purchasers weren’t named. He stated that there is no guarantee that a deal will close.

Prior to Tuesday’s stop, the stock was up 10.8 percent in Toronto, valuing the firm at C$8.6 billion. The Globe and Mail broke the news of the potential purchasers’ interest first.

Disagreements regarding the company’s succession plan and strategy led to previous CEO Glenn Chamandy’s December dismissal and a violent feud between Gildan’s board of directors, many institutional shareholders, and Chamandy himself. To fill his position, the board appointed Vince Tyra, who had previously worked for Fruit of the Loom.

Browning West LP, an investment firm based in Los Angeles, is leading the dissident group of investors that owns almost a third of Gildan’s shares. Electing a new board at the company’s annual meeting on May 28 is the money manager’s strategy to restore Chamandy.

In a new lawsuit, Browning West accuses the board of directors and the corporation of ignoring shareholder rights and interests.

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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