Gildan Activewear Board of Directors Issues Open Letter to Shareholders and Sets Record Straight on Browning West’s Misguided Campaign to Reinstall Former Gildan CEO - Seite 3

Contrary to his public denials, Mr. Chamandy not only gave the Board a direct ultimatum, but he also reiterated it in conversations with the Board Chair and in a letter to the Board Chair on Saturday, November 25, 2023 demanding an answer before Monday, November 27.

While the Board had originally proposed a three-year transition plan whereby Mr. Chamandy would retire by December 31, 2024, the ultimatums forced the Board to terminate Mr. Chamandy as CEO on December 10, 2023.

Questionable Behaviors

Recently, the Board has learned of new information regarding behaviors by Mr. Chamandy that took place around the time of his departure and are inconsistent with that of a senior executive. Mr. Chamandy recorded a private and confidential phone call on November 24, 2023 with the Chair of the Board without the Chair’s knowledge. Upon his departure he also violated company policies related to the safeguarding of corporate information. The Board of Directors is currently investigating these and other matters, including Mr. Chamandy’s engagement with certain shareholders prior to his termination.

Time For New Leadership

The Board’s fiduciary duty is to assure that Gildan is positioned in the strongest way possible for future success. The business has grown in scale and complexity, and the challenges and opportunities that lie ahead call for a new leader with fresh ideas, relevant skills, proven leadership ability and undivided commitment to the business.

The CEO search process was thorough and professional. The Board hired a leading firm in January 2022. The external phase of the search, which began in May 2023, culminated in the Board selecting Vince Tyra on December 10, 2023.

Mr. Tyra, who joins Gildan from Houchens Industries, a $4 billion revenue employee-owned holding company, is an accomplished leader with deep experience in the apparel industry spanning distribution, manufacturing and brand building. His proven track record involves developing and implementing pragmatic strategies that have enabled the organizations he led to grow, evolve and create value. Mr. Tyra’s diverse professional background across apparel, private equity and NCAA college sports reflects a consistent theme of effective leadership.