Gildan Activewear has announced a support agreement with Coliseum Capital Management, pursuant to which Coliseum will support the company’s full slate of board nominees at each of the 2024 and 2025 annual meetings of shareholders.
In connection with the agreement, Coliseum announced that it intends to make an additional investment in Gildan through market purchases during insider open window periods. Additionally, Chris Shackelton, a co-founder and managing partner of Coliseum joined Gildan’s board of directors.
After joining the Gildan board, Chris Shackelton said, “It is a privilege to serve on this board and represent shareholders at this critical juncture. This agreement is a clear reflection of our conviction in the company’s strategy, leadership, board and bright future.”
The development takes place after the Canadian investment management firm Turtle Creek Asset Management and Browning West, both longtime shareholders in Gildan issued a letter to Gildan board urging it to reverse its termination of Glenn Chamandy and reappoint him as CEO of the company.
“Coliseum’s intent to further invest in Gildan is a testament to its belief in the Company’s leadership, board, strategic plan and capability to deliver value,” added Donald C. Berg, chair of Gildan’s board.
Commenting about the board’s succession plans that had been publicly disseminated, Berg said: “Our succession plan has been a multi-year, careful, and deliberate process which included the former CEO at appropriate times throughout the process. It resulted in a well thought out rationale for the board’s unanimous decision to appoint Vince Tyra as the new CEO.”
