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Browning West Addresses Recent Media Reports That Highlight the Gildan Activewear Board’s Diligence Failures and Poor Judgement When Appointing Vince Tyra as CEO

Believes the Board Either Failed in its Diligence of Mr. Tyra or Willfully Overlooked His Concerning Prior Behavior, Which Has Created Undue Conflicts and Risks for Gildan

Exposes the Board’s Effort to Ramp Up its PR Machine and Shift Blame onto Browning West and Shareholders, Who Have Every Right to be Concerned About Their Investment and Scrutinize the Selection of a Questionable CEO

Urges the Board and Mr. Tyra to Immediately Commence an Orderly Resignation Process and to Work Expeditiously with Browning West to Substantially Reconstitute the Board

Browning West, LP (together with its affiliates, “Browning West” or “we”), which is a long-term shareholder of Gildan Activewear Inc. (NYSE: GIL) (TSX: GIL) (“Gildan” or the “Company”) and beneficially owns approximately 5.0% of the Company’s outstanding shares, today issued the below statement.

“Recent media coverage and an independent research report suggest the Board has presided over an egregious failure of due care and judgement by overlooking Mr. Tyra’s seemingly inappropriate relationship with a subordinate – who is currently an executive at Gildan – during his time as CEO of Broder Bros. We question if the Board uncovered this deeply troubling information during its CEO search process and how the sitting directors got comfortable appointing and retaining a CEO who felt it was acceptable to maintain such a relationship with someone who worked under him. We also question if the Board considered that the historical relationship between these two executives creates undue conflicts and risk for Gildan shareholders and employees.

No amount of deflecting and downplaying will allow the Board to succeed in sweeping this inexplicable lapse in diligence and judgement under the rug. To be clear, Browning West had absolutely no role in the independent research report referenced in recent media coverage and will pursue legal action against any parties that claim otherwise. We believe it is important to emphasize this point given that the Board has ramped up its PR machine and is proactively contacting media in an effort to push blame onto Browning West and shareholders, who have every right to be concerned about their investments in Gildan and to scrutinize the selection of a seemingly unfit CEO.

We urge Chairman Donald Berg and the Board, as well as Mr. Tyra, to recognize that it is in the best interest of all Gildan stakeholders to commence an orderly resignation process and work with Browning West to reconstitute the majority of the Board. The current directors have clearly failed in their assessment of Mr. Tyra in light of his record of value destruction, lack of critical manufacturing experience, and apparent decision to carry on a relationship with a subordinate while he was CEO of Border Bros. Now is the time for Gildan to agree to appoint all of the highly qualified director candidates proposed by Browning West to the Board, so that this unfortunate chapter in the Company’s history can end. This will allow for Gildan to once again focus on growing and strengthening its business and creating value for all of its shareholders.”

Disclaimer for Forward-Looking Information

Certain information in this news release may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking statements and information generally can be identified by the use of forward-looking terminology such as “outlook,” “objective,” “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “plans,” “continue,” or similar expressions suggesting future outcomes or events. Forward-looking information in this news release may include, but is not limited to, statements of Browning West regarding (i) how Browning West intends to exercise its legal rights as a shareholder of the Company, and (ii) its plans to make changes at the Board and management of the Company.

Although Browning West believes that the expectations reflected in any such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that (i) the Company may use tactics to thwart the rights of Browning West as a shareholder and (ii) the actions being proposed and the changes being demanded by Browning West, may not take place for any reason whatsoever. Except as required by law, Browning West does not intend to update these forward-looking statements.


Olshan Frome Wolosky LLP is serving as legal counsel, Goodmans LLP is serving as Canadian legal counsel, and IMK is serving as Quebec legal counsel. Longacre Square Partners is serving as strategic advisor and Pelican PR is serving as public relations advisor. Carson Proxy is serving as proxy advisor.

About Browning West, LP

Browning West is an independent investment partnership based in Los Angeles, California. The partnership employs a concentrated, long-term, and fundamental approach to investing and focuses primarily on investments in North America and Western Europe.

Browning West seeks to identify and invest in a limited number of high-quality businesses and to hold these investments for multiple years. Backed by a select group of leading foundations, family offices, and university endowments, Browning West’s unique capital base allows it to focus on long-term value creation at its portfolio companies.


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