The Canadian textile group Gildan Activewear Inc. wants to create a fait accompli after turbulent weeks. The controversial new CEO Vince Tyra will take up his position this Monday, almost a month earlier than planned, the company announced on Friday. Originally, Tyra wasn’t supposed to take over the executive chair until February 12th.
At the request of the Board of Directors, the new CEO has already made himself available to contact important stakeholders earlier and to provide the group with “the necessary stability and leadership strength,” according to a statement.
This was preceded by a weeks-long dispute between the company management and important investors. The trigger was a brief announcement in mid-December in which Gildan announced the immediate departure of previous CEO Glenn Chamandy without giving any reasons and introduced Tyra as his successor.
Activist shareholders such as Browning West and Turtle Creek Asset Management had sharply criticized the decision and called for the reinstatement of Chamandy, who was one of the company’s founders and had led the group for twenty years.
The board of directors responded with a series of messages in which it listed alleged bad business decisions and breaches of trust by the ousted CEO. However, the critical investors insisted until the end on a discussion about the change in leadership.