Turtle Creek has also asked Gildan’s board to “end their destructive PR campaign” on the topic and call a special meeting with shareholders without delay, as part of an open letter.
The letter stated that Turtle Creek is “deeply disappointed” that Gildan’s board has chosen to pursue a strategy that it believes is “aimed at disenfranchising its shareholders” by denying them a chance to vote.
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Turtle Creek is requesting that Gildan holds a meeting with shareholders to vote on the composition of its board “without delay”.
The letter continued: “You are entitled to make your case as to the reasons behind your ill-conceived, value destructive decision to terminate Gildan’s founder and CEO of over 20 years. But you are not entitled to stop the shareholders from voting on who they wish to represent them on the board of their company. And while we respect your right to communicate your reasons, we urge you to conduct yourselves in a professional manner.
“Your current destructive PR campaign of inferences and innuendo is, quite frankly, embarrassing to the company and to each of you. For the sake of each of your reputations, and for the sake of the company, we urge you to end it.”
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Turtle Creek has been an investor at Gildan for a decade. The investment firm has previously supported calls from fellow investors Browning West to replace Gildan’s board of directors.
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By GlobalDataThe open letter is the latest in an ongoing dispute over the decision to replace Gildan’s outgoing CEO Glenn Chamandy, which has been rumbling on since December 2023.
Most recently, Gildan accused Browning West of violating antitrust laws and called its campaign to reinstate Chamandy as “misguided”.
However, Browning West confirmed to Just Style it had informed Gildan it did not breach the HSR Act because the firm is exempt from filing and waiting period requirements.
Browning West also responded to the allegations in an open letter to Gildan’s shareholders, which was shared with Just Style. In the letter it said the latest move from Gildan was a “desperate and egregious entrenchment manoeuvre” to “deprive” shareholders of the opportunity to replace the board.
Turtle Creek’s most recent letter to Gildan’s board concluded: “There is still time to change course and preserve your professional reputations. Do not let your advisors push you into an ugly and costly proxy fight that you are unlikely to win.”
Gildan Activewear had not responded to Just Style’s request for comment on this latest development at the time of going to press.
