UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED
IN STATEMENTS FILED PURSUANT
TO § 240.13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO
§ 240.13d-2(a)
(Amendment No. 2)1
Gildan Activewear Inc.
(Name
of Issuer)
Common Shares
(Title of Class of Securities)
375916103
(CUSIP Number)
Andrew M. Freedman
Olshan Frome Wolosky LLP
1325
Avenue of the Americas
New
York, New York 10019
(212)
451-2300
(Name, Address and Telephone Number of Person
Authorized to Receive Notices
and Communications)
January 19, 2024
(Date of Event Which Requires
Filing of This Statement)
If
the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule
13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following
box ¨.
Note: Schedules
filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See
§ 240.13d-7 for other parties to whom copies are to be sent.
1
The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to
the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided
in a prior cover page.
The information required
on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities
Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject
to all other provisions of the Act (however, see the Notes).
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1 |
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NAME OF REPORTING PERSON |
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Browning West, LP |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
(a) ☐ |
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(b) ☐ |
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3 |
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SEC USE ONLY |
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SOURCE OF FUNDS |
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OO |
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) |
☐ |
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6 |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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DELAWARE |
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NUMBER OF |
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7 |
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SOLE VOTING POWER |
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SHARES |
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BENEFICIALLY |
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- 0 - |
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OWNED BY |
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SHARED VOTING POWER |
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EACH |
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REPORTING |
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8,640,448 |
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PERSON WITH |
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SOLE DISPOSITIVE POWER |
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- 0 - |
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SHARED DISPOSITIVE POWER |
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8,640,448 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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8,640,448 |
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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5.0% |
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TYPE OF REPORTING PERSON |
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PN, IA |
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1 |
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NAME OF REPORTING PERSON |
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Usman Nabi |
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CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
(a) ☐ |
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(b) ☐ |
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SEC USE ONLY |
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SOURCE OF FUNDS |
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OO |
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CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e) |
☐ |
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CITIZENSHIP OR PLACE OF ORGANIZATION |
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USA |
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NUMBER OF |
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SOLE VOTING POWER |
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SHARES |
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BENEFICIALLY |
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- 0 - |
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OWNED BY |
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8 |
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SHARED VOTING POWER |
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EACH |
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REPORTING |
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8,640,448 |
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PERSON WITH |
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SOLE DISPOSITIVE POWER |
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- 0 - |
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10 |
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SHARED DISPOSITIVE POWER |
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8,640,448 |
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11 |
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AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
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8,640,448 |
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CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
☐ |
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PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
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5.0% |
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14 |
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TYPE OF REPORTING PERSON |
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IN, HC |
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The following constitutes
Amendment No. 2 to the Schedule 13D filed by the undersigned (“Amendment No. 2”). This Amendment No. 2 amends the Schedule
13D as specifically set forth herein.
| Item 4. | Purpose of Transaction. |
Item 4 is hereby amended
to add the following:
The Reporting Persons are
severely disappointed by the Issuer’s persistence in focusing on an irrelevant issue under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the “HSR Act”). The Issuer’s seeming attempt to invalidate the Reporting Persons’ valid
requisition for a Special Meeting of Shareholders is intended to distract from the substance of the matter at hand – namely, the
Board’s extremely poor judgment in terminating Glenn Chamandy and hiring Vince Tyra to replace him, its refusal to engage in any
kind of good faith reconsideration of that decision, and its subsequent conduct which is explicable only as being designed to entrench
the Board, contrary to the best interests of the Issuer and its shareholders.
Nevertheless, on January
19, 2024, Browning West Cayman Fund LP (“BW Cayman”) filed, expressly under protest, a Notification and Report Form with the
Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice. Such filing was made under protest on the grounds
that certain acquisitions of Shares during December 2023 were not subject to the filing and waiting period requirements of the HSR Act
because of the Reporting Persons’ good faith belief that BW Cayman is exempt from filing pursuant to 16 C.F.R. § 802.51(b).
On January 21, 2024, the
Reporting Persons issued a press release and open letter (the “January 21 Press Release”), in which the Reporting Persons
emphasized their belief that the Board is now resorting to desperate and egregious entrenchment maneuvers to try and deprive its shareholders
of the opportunity to replace the directors responsible for recent missteps and value destruction with the Reporting Persons’ highly
qualified director candidates at the Special Meeting. In the January 21 Press Release, the Reporting Persons disclose that they were informed
that the Board is seeking to invalidate their requisition for the Special Meeting under Canadian law based on the irrelevant premise that
the Reporting Persons violated the HSR Act. The Reporting Persons believe it is clear that the Board has no respect for corporate democracy
or the Issuer’s shareholders and, despite holders of approximately 35% of the outstanding Shares independently making public statements
of support, the Board’s directors are deploying the Issuer’s corporate machinery for self-serving legal tactics designed to
insulate them from accountability. Despite the Board’s intransigence and clear desire to avoid being held accountable, the Reporting
Persons remain committed to taking all necessary steps, including through the legal and regulatory channels, to protect their investment
and set a strong foundation for long-term value creation for the Issuer.
A copy of the January 21
Press Release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
| Item 7. | Material to be Filed as Exhibits. |
Item 7 is hereby amended
to add the following exhibit:
| 99.1 | January 21 Press Release. |
SIGNATURES
After reasonable inquiry
and to the best of his knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete
and correct.
Dated: January 23, 2024
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Browning West, LP |
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By: |
/s/ Samuel Green |
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Name: |
Samuel Green |
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Title: |
Chief Compliance Officer and Chief Financial Officer |
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/s/ Usman Nabi |
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Usman Nabi |
Exhibit 99.1
Browning West Discloses Gildan Activewear’s Efforts
to Deprive Shareholders of an Opportunity to Reconstitute the Board at a Validly Requisitioned Special Meeting
Issues Letter to Fellow Shareholders Regarding
the Board’s Desperate and Self-Serving Attempt to Avoid Holding Browning West’s Requisitioned Special Meeting
Notes That the Board’s Most Recent Gambit
Coincides with Other Troubling Actions, Including the Initiation of a Campaign to Intimidate and Silence Vocal Shareholders
LOS ANGELES--(BUSINESS WIRE)--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 an open letter to fellow shareholders in response to the Board of Directors’ (the “Board”) attempt
to invalidate Browning West’s valid requisition for a Special Meeting of Shareholders (the “Special Meeting”).
***
Fellow Shareholders,
You are likely aware that Browning West, a long-term
and significant shareholder of Gildan, recently requisitioned a Special Meeting to provide you the opportunity to vote on a reconstitution
of the Board. We took this step because Gildan’s directors have destroyed substantial value and jeopardized the Company’s
future by abruptly terminating a proven Chief Executive Officer and installing a new leader with a clear track record of value destruction
and no articulated strategy. As we had forewarned in our January 9th letter to shareholders, we are writing to alert
you that the Board is now resorting to desperate and egregious entrenchment maneuvers to try to deprive you of the opportunity to replace
the directors responsible for recent missteps and value destruction with Browning West’s highly qualified director candidates at
a Special Meeting.
This past weekend, Browning West was informed that
the Board is seeking to invalidate our requisition under Canadian law for a Special Meeting based on the false premise that we violated
the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976. Although we would normally just privately address this seemingly flawed
and self-serving allegation, it has become clear to us that the Board has no respect for corporate democracy or the shareholder franchise.
It is obvious that Browning West poses no substantive antitrust concerns to any concerned authority, which is why the Board’s gambit
only reinforces our previously articulated case for removing a majority of directors and specifically: Donald Berg, Maryse Bertrand, Marc
Caira, Shirley Cunningham, Charles Herington, Luc Jobin, Craig Leavitt, and Chris Shackelton. Despite holders of approximately 35% of
Gildan’s outstanding shares independently publicizing their support for Browning West’s campaign, these directors are deploying
Gildan’s corporate machinery on self-serving legal tactics designed to insulate them from accountability. We know that the Board
has hired at least three law firms, two investment banks, a public relations firm, a proxy solicitor, and a private investigator. This
absurd level of expenditure is being borne by shareholders and deployed against our own interests for the simple reason that the Board
presumably knows that if a vote was held today, all eight of our director candidates would be elected. Meanwhile, every day that Gildan
delays the Special Meeting, the value destruction and risk of permanent damage to the business continues under the “leadership”
of the current Board.
It is important to highlight that the Board’s
troubling conduct extends well beyond this latest stunt. In addition to spending the past two weeks publicizing misinformation about Browning
West and Gildan’s founder and former Chief Executive Officer Glenn Chamandy, the Board has been brazenly dismissing our reasonable
requests to set a date for the Special Meeting. We have also received unsolicited feedback that the Board has been actively trying to
silence vocal shareholders by sending them threatening and meritless legal letters. Additionally, it has come to our attention that Gildan
has retained the law firm that Browning West has continuously engaged since the fund’s inception and been using for normal-course
investment fund work as recently as last week. We believe that Gildan retained our legal advisor for activism defense services after we
issued our December 14th letter to the Board and did so without Browning West providing a conflict waiver. This is a deplorable
tactic that poses serious legal and ethical issues, and we are deeply concerned that Browning West’s confidential information has
been shared with Gildan and its advisors.
Although we want you to be aware of the facts pertaining
to the Board’s disturbing actions, rest assured that Browning West is in no way deterred or intimidated. Gildan has been one of
Canada’s greatest value creation case studies, but it is unfortunate that the Board is now turning it into one of Canada’s
greatest corporate governance failures. Despite the Board’s intransigence and clear desire to avoid being held accountable at a
Special Meeting, we are completely committed to taking all necessary steps, including through the legal and regulatory channels, to protect
our investment and set a strong foundation for long-term value creation at Gildan. In our view, the Board’s poor conduct only serves
to validate Browning West’s campaign.
Sincerely,
Usman S. Nabi |
Peter M. Lee |
***
No Solicitation
This press release is for informational purposes only
and is not a solicitation of proxies. If Browning West determines to solicit proxies in respect of any meeting of shareholders of the
Company, any such solicitation will be undertaken by way of an information circular or as otherwise permitted by applicable Canadian corporate
and securities laws.
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.
Advisors
Olshan Frome Wolosky LLP is serving as legal counsel,
Goodmans LLP is serving as Canadian legal counsel, and Longacre Square Partners is serving as strategic advisor to Browning West. 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.
Browning West
Longacre Square
Partners
Charlotte Kiaie /
Scott Deveau, 646-386-0091
| browningwest@longacresquare.com | |
Carson Proxy
Christine Carson,
416-804-0825
| christine@carsonproxy.com | |
###
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