Gildan Activewear Inc. says its plan to replace co-founder Glenn Chamandy as chief executive was a multi-year, careful and deliberate process that included him at appropriate times.

Chamandy said last week that he was terminated without cause after four decades with the company, including nearly 20 years as president and chief executive. Several large shareholders have called for him to be reinstated.

In a statement, Gildan chair Donald Berg says the company's succession planning resulted in a well thought out rationale for the board’s unanimous decision to appoint Vince Tyra as the new CEO.

The comments by Berg came as Gildan announced an agreement with Coliseum Capital Management that will see the investment firm support the company's board nominees for its 2024 and 2025 annual meetings.

Coliseum holds a 6.6 per cent stake in Gildan, according to financial markets data firm Refinitiv. In connection with its support agreement with Gildan, the investment firm plans to increase its holdings in the company.

Chris Shackelton, a co-founder and managing partner of Coliseum, was also appointed to Gildan's board of directors.

This report by The Canadian Press was first published Dec. 18, 2023.