Oakcliff Capital Sends Letter to the Board of Gildan Activewear Calling for the Return of Glenn Chamandy as CEO

Rhea-AI Summary

Oakcliff Capital Urges Gildan Activewear Inc. (NYSE: GIL) to Replace Chairman and Appoint Shareholder Representatives

Believes the Board’s Actions Demonstrate the Need to Replace Chairman Donald Berg and to Appoint Shareholder Representatives to Ensure Alignment of All Stakeholders’ Interests

NEW YORK--(BUSINESS WIRE)-- Oakcliff Capital, a long-term shareholder of Gildan Activewear Inc. (NYSE: GIL) (TSX: GIL) (“Gildan” or the “company”), today issued the following letter to the company’s Board of Directors (the “board”).

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Board of Directors
Gildan Activewear Inc.
600 de Maisonneuve West, 33rd Floor
Montreal, Quebec
H3A 3J2, Canada

December 19, 2023

Dear Board of Directors,

Oakcliff Capital manages a concentrated portfolio of equity investments that we have chosen based on deep research, and that we seek to own for 5-10 years. We typically invest in 10-15 businesses run by talented and shareholder-friendly management teams.

We own 0.4% of Gildan’s shares outstanding. We made our investment in Gildan based on the quality of Gildan’s business and confidence in Glenn Chamandy’s leadership, as well as his plan to develop successors familiar with Gildan’s culture of manufacturing excellence.

The decision by Gildan’s board to fire Glenn without cause and replace him as CEO dismayed us. After working to understand the facts and the perspectives of different parties, we believe that the board’s decision was unwise and not in the interests of the company or its shareholders.

We believe that Glenn Chamandy needs to be reinstated as CEO and that the board needs to see a change in its chairman and the inclusion of two new members who are significant shareholders.

These changes should be made rapidly, as we believe that the uncertainty created by the board’s actions is bad for Gildan’s relationships with customers and employees.

Sincerely,

Bryan R. Lawrence
John J. Jamgochian

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About Oakcliff Capital

Oakcliff Capital makes long-term investments in undervalued, high-quality businesses. The firm performs intensive, primary research on prospective investments in order to assess the quality of their businesses, the strength of their management teams and their value relative to the market price.

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info@oakcliffcapital.com

646-873-8505

Source: Oakcliff Capital

FAQ

Why is Oakcliff Capital urging Gildan Activewear Inc. (NYSE: GIL) to replace the chairman and appoint shareholder representatives?

Oakcliff Capital believes that the board's decision to fire CEO Glenn Chamandy without cause and replace him was unwise and not in the interests of the company or its shareholders. They are urging for the reinstatement of Glenn Chamandy as CEO and a change in the chairman, as well as the inclusion of two new members who are significant shareholders.

What is the reason behind Oakcliff Capital's dissatisfaction with the board's actions?

Oakcliff Capital is dissatisfied with the board's actions because they believe that the uncertainty created by the board's decisions is bad for Gildan's relationships with customers and employees.

How much of Gildan's shares outstanding does Oakcliff Capital own?

Oakcliff Capital owns 0.4% of Gildan's shares outstanding.

What is Oakcliff Capital's typical investment strategy?

Oakcliff Capital manages a concentrated portfolio of equity investments that they have chosen based on deep research and seek to own for 5-10 years. They typically invest in 10-15 businesses run by talented and shareholder-friendly management teams.