Gildan announces that its entire 12-person board would resign immediately in favor of activist Browning West’s eight nominees, ending a drawn-out proxy battle and restoring former CEO Glenn Chamandy to the company he founded, according to multiple news reports.

Browning West along with other Gildan shareholders had been fighting to bring back Chamandy as CEO after he was ousted in December 2023. Vince Tyra was named the replacement, and a long battle ensued over leadership of the apparel manufacturer. Tyra will also step down as president and chief executive officer.

Five directors stepped down earlier this year as part of a “board refreshment,” and a proxy vote has been the recent point of debate leading up to the May shareholder meeting. The decision to mass resign was a result of shareholders making “their views clear” as the May 28 Annual Meeting came close, says a press release from Gildan.

“We are deeply grateful for the outpouring of support that Browning West’s slate and plan have received from our fellow shareholders, Gildan employees, and leading proxy advisory firms,” Browning West’s Usman Nabi and Peter Lee said in a statement that was shared by CNBC.

CNBC also shared that Michael Kneeland, a former CEO of United Rentals, will become Gildan’s chair amid this latest news. The seven other directors, including Chamandy, are expected to soon step into their roles. Other major shareholders, including Anson Funds and Janus Henderson, backed Browning West’s push. The activist also won full support from proxy advisors Glass Lewis and ISS.

“I’m extremely excited to return as Gildan’s CEO and am gratified for the incredible support I have received from both shareholders and employees over the past six months,” Chamandy said in a statement.

May 28 Shareholder Meeting Update

On Tuesday, May 28, shareholders officially voted to place Chamandy back on its board alongside a slate of candidates put forward by activist investors. According to an article from Coast Reporter, he told reporters in Montreal the conduct of Gildan’s prior board over the past several months showed “poor judgement.”

According to Chamandy, the drawn-out battle cost the apparel manufacturer at least $65 million. That number comprises severances to outgoing board members and two executives, the proposed company sale process — which has since been scrapped — as well as legal costs that include lawsuits launched by Gildan against Browning West that were dismissed earlier this month, Chamandy said. That does not include his own severance, which he claims he never received.

As for the go-forward strategy, Chamandy put the rumors of the sale to bed and noted that he will stay at the helm for the foreseeable future. “I’ve got a lot of energy. I’m in my early 60s, which is early 50s in the future,” he said in a news report.

Gildan says that just under 84% of shareholder votes cast in its Tuesday election were in favor of the Chamandy retaking his place on the company’s board, reports The Globe and Mail. In addition, the seven other nominees elected to the board alongside him received support levels between 83% and 99%.

Gildan added that a vote on executive compensation had an approval level of about 74%, while a shareholder proposal asking the company to report on the effectiveness of its human-rights infrastructure came in just under 14% support.