Gildan Activewear

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Gildan Activewear Inc.
Public company
Traded as TSX:  GIL
NYSE:  GIL
S&P/TSX 60 component
Industry Textile, Clothing
Founded 1984
Founder Glenn Chamandy, Greg Chamandy
Headquarters Montreal, Quebec , Canada
Key people
 Glenn J. Chamandy (CEO), Rhodri J. Harries (CFO)
Revenue US$ 1.95 billion (FY 2015) [1] [lower-alpha 1]
US$ 327.2 million (FY 2015) [1] [lower-alpha 1]
US$ 304.9 million (FY 2015) [1] [lower-alpha 1]
Total assets US$ 2.83 billion (FY 2015) [1]
Total equity US$ 2.19 billion (FY 2015) [1]
Number of employees
 42,000 (2015) [1]
Subsidiaries American Apparel (online retailer)
Website www.gildan.com

Gildan Activewear Inc. is a Canadian manufacturer of branded clothing, including undecorated blank activewear such as t-shirts, sport shirts and fleeces, which are subsequently decorated by screen printing companies with designs and logos. The company also supplies branded and private label athletic, casual and dress socks to retail companies in the United States [2] including Gold Toe Brands, PowerSox, SilverToe, Auro, All Pro, and the Gildan brand. [3] The company also manufactures and distributes Under Armour and New Balance brand socks. [4] The company has approximately 42,000 employees worldwide, [1] and owns and operates manufacturing facilities in Rio Nance, Honduras [5] and the Caribbean.

Canada Country in North America

Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering 9.98 million square kilometres, making it the world's second-largest country by total area. Canada's southern border with the United States is the world's longest bi-national land border. Its capital is Ottawa, and its three largest metropolitan areas are Toronto, Montreal, and Vancouver. As a whole, Canada is sparsely populated, the majority of its land area being dominated by forest and tundra. Consequently, its population is highly urbanized, with over 80 percent of its inhabitants concentrated in large and medium-sized cities, many near the southern border. Canada's climate varies widely across its vast area, ranging from arctic weather in the north, to hot summers in the southern regions, with four distinct seasons.

Sportswear (activewear) Clothing worn for sport or physical exercise

Sportswear or activewear is clothing, including footwear, worn for sport or physical exercise. Sport-specific clothing is worn for most sports and physical exercise, for practical, comfort or safety reasons.

T-shirt piece of clothing with short sleeves, a round or V-shaped neckline, without collars, pockets or buttons

A T-shirt is a style of unisex fabric shirt named after the T shape of its body and sleeves. Traditionally it has short sleeves and a round neckline, known as a crew neck, which lacks a collar. T-shirts are generally made of a stretchy, light and inexpensive fabric and are easy to clean.

Contents

Glenn and Greg Chamandy founded Gildan in 1984 with the acquisition of a knitting mill in Montreal, Quebec, Canada, [6] to make fabric to supply the Harley Inc., the childrenswear business already owned by the family. It later expanded to sell t-shirts made of 100% cotton to wholesalers, which resold them to United States and Canadian screen-printers, to be decorated with designs and logos. By 1994, Harley was closed in order to focus on the expansion of what had become Gildan Activewear. [7]

Knitting Method of forming fabric from yarn

Knitting is a method by which yarn is manipulated to create a textile or fabric, often used in many types of garments.

Montreal City in Quebec, Canada

Montreal is the most populous municipality in the Canadian province of Quebec and the second-most populous municipality in Canada. Originally called Ville-Marie, or "City of Mary", it is named after Mount Royal, the triple-peaked hill in the heart of the city. The city is centred on the Island of Montreal, which took its name from the same source as the city, and a few much smaller peripheral islands, the largest of which is Île Bizard. It has a distinct four-season continental climate with warm to hot summers and cold, snowy winters.

The combination of very low wages and advanced technology has allowed Gildan to lower its price per shirt to below that of Chinese manufacturers. [8]

China Country in East Asia

China, officially the People's Republic of China (PRC), is a country in East Asia and the world's most populous country, with a population of around 1.404 billion. Covering approximately 9,600,000 square kilometers (3,700,000 sq mi), it is the third- or fourth-largest country by total area. Governed by the Communist Party of China, the state exercises jurisdiction over 22 provinces, five autonomous regions, four direct-controlled municipalities, and the special administrative regions of Hong Kong and Macau.

Growth

Gildan opened its first offshoring sewing facility in Honduras, in 1997. The plant was vertically integrated and employed 1,200 workers. A year later, the company achieved an Initial public offering and was listed publicly on both the Toronto Stock Exchange and the NYSE MKT. [9]

Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Typically this refers to a company business, although state governments may also employ offshoring. More recently, technical and administrative services have been offshored.

Sewing craft of fastening or attaching objects using stitches made with a needle and thread

Sewing is the craft of fastening or attaching objects using stitches made with a needle and thread. Sewing is one of the oldest of the textile arts, arising in the Paleolithic era. Before the invention of spinning yarn or weaving fabric, archaeologists believe Stone Age people across Europe and Asia sewed fur and skin clothing using bone, antler or ivory needles and "thread" made of various animal body parts including sinew, catgut, and veins.

Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors; an IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used: to raise new equity capital for the company concerned; to monetize the investments of private shareholders such as company founders or private equity investors; and to enable easy trading of existing holdings or future capital raising by becoming publicly traded enterprises.

By 2001, Gildan was the leading distributor of 100% cotton T-shirts in the US as determined by the ACNielsen S.T.A.R.S. Report.[ citation needed ] The next year, the company opened a knitting, bleaching, dyeing, finishing and cutting facility in Rio Nance, Honduras. [9]

In 2010 the company invested $15m in Shahriyar Fabric Industries Limited in Bangladesh to support planned growth in Asia and Europe. [10]

Bangladesh Country in South Asia

Bangladesh, officially the People's Republic of Bangladesh, is a sovereign country in South Asia. It shares land borders with India and Myanmar (Burma). The country's maritime territory in the Bay of Bengal is roughly equal to the size of its land area. Bangladesh is the world's eighth most populous country as well as its most densely-populated, to the exclusion of small island nations and city-states. Dhaka is its capital and largest city, followed by Chittagong, which has the country's largest port. Bangladesh forms the largest and easternmost part of the Bengal region. Bangladeshis include people from a range of ethnic groups and religions. Bengalis, who speak the official Bengali language, make up 98% of the population. The politically dominant Bengali Muslims make the nation the world's third largest Muslim-majority country. Islam is the official religion of Bangladesh.

Gildan Activewear shirts with Wikia logo WM2006wikiashirts.jpg
Gildan Activewear shirts with Wikia logo

In May 2012, Gildan again expanded with its purchase of 130-year old apparel maker Anvil Holdings, Inc., the parent company of Anvil Knitwear and producer of environmentally-friendly lines of sustainable, recycled and organic apparel.

Gildan bought a 30-second spot to air an advertisement during the third quarter of the 2013 Super Bowl. The ad was part of an overall $25 million marketing push created by DeVito/Verdi, which included broadcast, print, digital, event marketing, and public relations. Gildan started speaking to the media about its Super Bowl ad in early December 2012. [11]

The company also sponsored the Gildan New Mexico Bowl, which was played December 15, 2012 in Albuquerque. [12]

In 2014, Gildan Activewear acquired Doris Hosiery for $Can 110 million.

In 2016, Gildan Activewear announced its $55 million purchase of PEDS Legwear. [13]

In 2017, Gildan Activewear purchased American clothing company, American Apparel for $88 million at auction. This deal did not include retail locations. [14]

Environment and sustainability

In the past decade, Gildan implemented sustainability initiatives to reduce or eliminate potentially negative effects its facilities might have on the environment. Facilities in Honduras and the Dominican Republic employ Biotop, a biological wastewater management system that uses gravity, microorganisms and sunlight to remove chemicals and dyes from wastewater. [15] [ not in citation given ] When treated by Biotop, the water is beneficial to nearby ecosystems and suitable for use in local agriculture. [16]

Allegations of labor rights violations

Genesis, S.A. is a Haitian factory manufacturing T-shirts whose main customer is Gildan Activewear. It has been accused as the most serious offender in a campaign of retaliatory dismissals, targeted at the leaders of a new labor rights and union organizing effort in Port-au-Prince. [17]

Harshest working conditions in the global apparel industry [18]

Genesis, S.A. is a Haitian factory manufacturing T-shirts and its only customer is Gildan Activewear. [19] Genesis, S.A. has been the most serious offender in a multi-factory campaign of retaliatory dismissals, targeted at the leaders of a new labor rights and union organizing effort in Haiti’s capital, Port-au-Prince. Haitian apparel workers receive the lowest wages in the hemisphere and face some of the harshest working conditions anywhere in the global apparel industry.[7]

WRC Report: Stealing from the Poor: Wage Theft in the Haitian Apparel Industry

A report titled "Stealing from the Poor: Wage Theft in the Haitian Apparel Industry," highlights the fact that the "average wages are even lower at the new Caracol Industrial Park despite the fact that the project was heavily subsidized by the United States government with earthquake recovery aid as a means of providing Haitian workers with a path out of poverty." [20] The best farmland was taken from farmers to give to the South Korean company, and wages have never been what they promised the workers.

Corporate citizenship

In 1994 Gildan became the first wholesale activewear manufacturer to obtain the Oeko-tex standard 100 Certification. [21] Oeko-Tex is a set of uniform safety standards within the textile industry; certification ensures that processes and final products have been tested for harmful substances and found to contain amounts lower than Oeko-Tex’s set limits.

Gildan has its own Social Compliance Program designed to enforce humane standards for working conditions and labor practices. [22] Facilities, including those of external suppliers, are audited for compliance with Gildan’s internal Code of Conduct and adherence to standards of the Worldwide Responsible Accredited Production (WRAP).

Gildan was also the first basic activewear manufacturer to be accredited by the FLA. Audits are also performed to ensure compliance with standards of the Fair Labor Association (FLA). [23]

In 2010–2011, Gildan purchased 85% of non-yarn supplies locally in Central America and 76.5% in the Caribbean Basin. [24]

Philanthropy

Homeboy Industries, which provides employment and services for at-risk and formerly gang-affiliated youth, received a donation of $100,000 as a result of Gildan’s first "I Support... Charity" campaign. [25]

In 2011, the second year of the "I Support" program, Gildan added a new feature called Gildan Good Cards. The cards can be redeemed for a $50 donation to any 501(c)(3) charity and are given to employees who nominate a charity. The Good Cards have the effect of dispersing the company’s philanthropic efforts; while only five nominated charities receive large donations, more than 90 charitable organizations benefitted from Good Card redemptions. The cards resulted in an extra $100,000 distributed among the 90+ additional philanthropies. [26]

Advertising

In a 2017 commercial, Gildan depicted older men in white briefs and urged younger men not to wear their dads' underwear like that. [27]

Blake Shelton was a spokesperson for the company. [28]

Notes

  1. 1 2 3 Gildan Activewear changed its annual reporting period in 2015. [1] The figures presented in the infobox cover a period from October 6, 2014 to January 3, 2016, a period of 15 months.

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References

  1. 1 2 3 4 5 6 7 8 "Gildan 2015 Report to Shareholders". Securities and Exchange Commission. February 25, 2016. Retrieved 13 June 2016.
  2. ↑ "How to coax profit from the market's 'Great Rotation'". Market Watch. Retrieved 7 February 2013.
  3. ↑ "Leading Apparel Manufacturer Turns To DeVito/Verdi To Develop Retail Brand And Refresh Iconic Gold Toe Brand. - Free Online Library".
  4. ↑ 2011 Annual Report
  5. ↑ "Gildan Will Build New Textile Plant at Rio Nance".
  6. ↑ "Gildan Activewear Inc".
  7. ↑ "HSBC Global Connections — Helping businesses grow internationally". Bwob.ca. Retrieved 2013-11-09.
  8. ↑ "Beat China On Cost: Gildan taps other labour pool and trade pacts". 9 January 2006.
  9. 1 2 Story of Gildan Challenging China
  10. ↑ "CANADA: Gildan invests $15m in Bangladesh factory". just-style.com. 2010-03-31.
  11. ↑ "Early Kickoff for Marketers at Super Bowl". The New York Times. 12 December 2012.
  12. ↑ http://www.gildannewmexicobowl.com,ESPN%5Bpermanent+dead+link%5D
  13. ↑ Delean, Paul (July 27, 2016). "Gildan snaps up Peds Legwear". Montreal Gazette . Retrieved July 27, 2016.
  14. ↑ "Gildan wins auction for American Apparel, pays $88M for the brand — but not the stores". CBC News. Retrieved 2017-01-10.
  15. ↑ New York Times
  16. ↑ "Gildan Genuine Stewardship Website - Environment".
  17. ↑ WRC Factory Investigation Genesis, S.A.
  18. ↑ At present, Haitian apparel workers receive the lowest wages in the hemisphere and face some of the harshest working conditions anywhere in the global apparel industry., "Preliminary Report on Unlawful Dismissals at Genesis, S.A. (Haiti)", October 11, 2011. Page 1.
  19. ↑ "Two collegiate licensees, Ad Resources and Cotton Gallery, disclose Genesis as a collegiate factory. Both brands buy their products through Gildan, which purchases virtually all of the factory’s output.", "Preliminary Report on Unlawful Dismissals at Genesis, S.A. (Haiti)", October 11, 2011. Page 2.
  20. ↑ Worker Rights Consortium "The WRC’s research found that factories in Port-au-Prince fail to pay workers a third of their legally mandated wages. Average wages are even lower at the new Caracol factory complex despite the fact that the project was heavily subsidized with earthquake recovery funds from the United States government as a means of providing Haitians with a path out of poverty." WRC, Stealing from the Poor: Wage Theft in the Haitian Apparel Industry, October 2013, page 10.
  21. ↑ Gildan Activewear Obtains Prestigious International Environmental Certification
  22. ↑ "Gildan Genuine Stewardship Website - People".
  23. ↑ "Top 50 socially responsible corporations" . Retrieved 7 February 2013.
  24. ↑ "Gildan Genuine Stewardship Website - Community".
  25. ↑ "Gildan Donates $100,000 to Homeboy Industries for its First "I Support..." Campaign – Press Releases on CSRwire.com".
  26. ↑ "Gildan Reveals the Names of the 2011 Gildan "I Support..." Program Award Recipients". Archived from the original on 2017-02-19. Retrieved 2017-01-15.
  27. ↑ http://www.adweek.com/agencyspy/okrp-gildan-advise-millenials-dont-wear-your-dads-underwear/130117
  28. ↑ http://tasteofcountry.com/blake-shelton-underwear-model-gildan/
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