Browning West, which owns a 5% stake in Gildan Activewear, has called for a majority of Gildan’s board of directors to be replaced and asked for a special meeting with shareholders to be called as soon as possible.

The letter states: "We believe installing Browning West’s majority slate at the special meeting will help protect Gildan and long-term shareholder value."

The move is the latest step in an ongoing dispute between Gildan’s board of directors and a number of company shareholders that has emerged since previous CEO Glenn Chamandy left the company in December 2023.

In November 2023, Gildan reported a drop in profits during the third quarter of 2023, following lower demand and higher costs.

In an open letter to all shareholders, Browning West says it is requesting the change to the board as it believes the current Gildan directors are “entirely unresponsive to shareholder demands”.

Browning West has accused Gildan’s board of using “extreme delay tactics” by postponing its next annual meeting and any special meetings to autumn 2024.

The company is calling for a special meeting to be held as soon as possible. The letter states: "It is critical that the board hold the special meeting expeditiously, because with each passing day the current state of uncertainty is risking permanent damage to Gildan stakeholders."

The news comes shortly after Gildan's board of directors published an open letter to shareholders, claiming it is "unanimous in its conviction" that reinstating the company's former CEO would jeopardise Gildan's future.

The board claimed it was left with no option but to remove Chamandy after he asked it to approve a multi-billion dollar acquisitions strategy, that would require him to remain in place as CEO for several more years to oversea the integration.

Browning West has previously called for the reinstatement of Chamandy, the termination of his replacement Vince Tyra. The investor has also called for Donald Berg to be replaced as chairman by Michael Kneeland.