QUEBEC INC.
Walmart abandons plan to open Quebec fulfilment centre, will instead upgrade stores
Walmart Canada says it is abandoning plans to open a new fulfilment centre in Quebec.
The U.S. retail giant was due to spend $100 million on the facility slated for the Montreal-area municipality of Vaudreuil-Dorion. It was expected to open early this year.
Walmart Canada spokesperson Sarah Kennedy confirmed the change of plans in an emailed statement, but d toronto id not say what prompted the company's decision.
Kennedy says the company will instead focus its attention on accelerating upgrades to its network of stores, including locations in Quebec.
She says Walmart has plans to invest about $100 million to upgrade eight stores in Quebec by the end of the company's next fiscal year.
Walmart has allocated more than $120 million toward store upgrades in the province over the last two years.
This report by The Canadian Press was first published Jan. 4, 2024.
Gildan activists turn up heat on board for
shareholder vote
, Bloomberg News
Jan 4, 2024
Canadian investment firm Turtle Creek Asset Management Inc. is backing another shareholder’s push to change the board of Gildan Activewear Inc., saying the company needs a “swift resolution” to the battle over who should be CEO.
Turtle Creek, one of Gildan’s largest investors, plans to vote for a slate of five new directors proposed last week by Los Angeles-based money manager Browning West LP.
The two firms, along with several others including Jarislowsky Fraser Ltd., are angry that the Gildan board sacked longtime Chief Executive Officer Glenn Chamandy in December. Browning West says it plans to force a shareholder meeting to vote on a new board.
“The board’s reckless and ill-conceived termination of CEO Glenn Chamandy alienated long-time shareholders and exposed Gildan to significant risks including a loss of essential leadership, damaged employee morale, and threatened key customer relationships,” Turtle Creek said in a statement Thursday.
“We cannot recall a situation where shareholder objection to a board’s decision was so wide and so swift.” Gildan shares have fallen 13 per cent since Chamandy was ousted.
New York-based Oakcliff Capital followed with its own letter to Gildan, pledging to vote for Browning West’s slate of directors. The firm said the sale of shares by some other members of Gildan’s management team pointed to a lack of confidence.
Chamandy “should be reinstated as CEO immediately,” Oakcliff said.
These firms’ latest missives mark another escalation in the boardroom brawl at Gildan, a Montreal-based clothing manufacturer that owns the American Apparel brand. It may be months before the matter comes to a head — Browning West may be able to force a shareholder meeting, but the board has some discretion over the timing.
Gildan has appointed a new CEO, Vince Tyra, to take over on Feb. 12.
“Each member of the board should carefully consider how they conduct themselves in this matter. Investors across North America are watching closely,” said Turtle Creek, which owned more than 3 per cent of Gildan shares as of Sept. 30, according to data compiled by Bloomberg. Browning West says it owns about 5 per cent.
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