HanesBrands announced on Thursday that its board of directors has appointed Colin Browne, Natasha Chand and John Mehas as independent directors to the board, effective immediately.
In connection with these appointments, the parent company of Champion said it has entered into an agreement with shareholder Barington Capital Group.
Under the agreement, Barington has agreed to customary standstill, voting and other provisions. In addition, Barington will provide advisory services to the U.S. company from time to time with respect to its business, operations, strategic and financial matters, corporate governance and the composition of the board.
“We are pleased to welcome Colin, Natasha and John as independent directors to the HanesBrands board,” said Ronald Nelson, chairman of the board, HanesBrands, which in September said it is mulling “strategic options” for its suffering Champion brand, including a potential sale.
“They bring important relevant experience in retail, consumer brands and operations, and we look forward to gaining their insights as the company continues to focus on driving improved performance and pursues key ongoing initiatives including the evaluation of alternatives for the global Champion business. The board is fully supportive of the company’s CEO, Steve Bratspies, as he and the broader team continue to execute on all of the company’s strategic plans, and we are steadfast in our commitment to delivering sustainable value creation for shareholders. We are confident the addition of these directors in combination with our current directors brings together diverse perspectives that will be beneficial as the company continues to take actions to drive accelerated growth and profitability.”
With these appointments, the company’s board will temporarily expand to 13 directors before returning to 10 directors effective at the 2024 annual meeting of stockholders.
“We believe this newly constituted board is positioned to guide the company forward in pursuing our mutual goal to create value for HanesBrands’ shareholders,” said James Mitarotonda, chief executive officer of Barington.
“We appreciate the efforts and recent actions taken by Steve Bratspies and the management team. We look forward to working with him and the board.”
The board reshuffle comes weeks after HanesBrands posted a 9.5% contraction in third-quarter sales to $1.51 billion, as the U.S. apparel firm’s Champion brand faced another tumultuous quarter, down 19% on the same period last year.
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