(RTTNews) - Apparel manufacturer Gildan Activewear Inc. (GIL), stated in an open letter to shareholders on Wednesday that its former CEO Glenn Chamandy had refused to adhere to the previously agreed-upon succession plan. According to this plan, he was to be replaced by the new CEO Vince Tyra.
The company mentioned that Chamandy had agreed to the succession plan in December 2021. Following this agreement, a search for a new CEO was conducted, and the Board selected Vince Tyra on December 10.
In October, Chamandy requested the Board to allow him to stay as CEO to implement future acquisition plans. The Board denied the request.
After the incident, Chamandy stated to The Globe and Mail in an article on December 16: "I had no intention of leaving. You know, my view is that I would leave when I think the time is right for the company."
The letter further stated that the Board was upset with Chamandy's effort to disrupt the succession plan and continued to defend its decision about the appointment of Tyra as the new CEO.
Also, Chris Shackelton, Co-Founder and Managing Partner of Coliseum Capital Management has accepted to join the Board.
Currently, Gildan's stock is slipping 1.22%, to $34.07 on the New York Stock Exchange.
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