The battle for control at Gildan Activewear Inc. has taken a bitter turn.Christopher Katsarov/The Globe and Mail
Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.
Gildan’s corporate battle takes a bitter turn
The battle for control at Gildan Activewear Inc. has taken a bitter turn. The company is accusing one of its largest shareholders, U.S. investment fund Browning West, of violating American securities law and spreading falsehoods about the company’s new chief executive, Vince Tyra. Earlier in the week, the company publicly accused Browning West of planting a misleading story in American media about Mr. Tyra – something the shareholder has staunchly denied. Browning West is a key player among a group of nine dissident investors who hold an estimated combined 35 per cent of Gildan’s stock. These shareholders want co-founder Glenn Chamandy reinstated as CEO. Here’s a timeline of everything that’s happened so far.
Canadians’ wealth is bolstered by stock rally, Statscan says
Canadians’ total household net worth increased at the end of 2023, driven largely by strength in financial markets as both bonds and equities rallied. The household net worth rose by $290-billion, or 1.8 per cent, to roughly $16.4-trillion in the fourth quarter, Statistics Canada said Wednesday in a report. Matt Lundy reports, however, that the increase in financial assets outweighed a 1.9 per cent drop in the value of residential real estate. Meanwhile, the household debt service ratio – total obligated payments of principal and interest as a proportion of disposable income – was little changed at 15 per cent in the fourth quarter – similar to highs seen in 2007 and 2019.
Canada and the U.S. share one thing in common: a mountain of debt
Debt levels in both Canada and the U.S. are starting to look eerily similar, Jason Kirby reports. Household, corporate and government debt is now equal to 335 per cent of GDP in the U.S., and 341 per cent in Canada. Economists note that Canada has dipped from its pre-COVID-19 level because of a drop in corporate debt while the U.S. is slightly ahead of where it was before the pandemic. Get a closer look in this week’s Decoder.
Harry Rosen launching $50-million overhaul of retail stores over five years
Harry Rosen is embarking on a $50-million plan to overhaul its entire store network over the next five years, Susan Krashinsky Robertson reports. Men’s fashion has changed drastically over the past four years, and the menswear retailer has been forced to adapt to changing styles and shopping habits. The company, which has 19 stores across Canada and five outlet locations, will add one store in Vancouver. It will also move the Toronto flagship from Bloor Street to the upscale Yorkville neighbourhood, opening in 2026. The rest of the stores will undergo major updates to give customers a reason to shop in person.
CEOs of Canada’s five biggest banks see compensation fall in 2023
Some of the chief executives at Canada’s biggest banks took a pay cut in 2023. The CEOs at Royal Bank of Canada, Toronto-Dominion Bank, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce earned a combined $62.63-million in total compensation in 2023, down from $70.34-million the year prior, according to the filings. The banks dealt with higher borrowing costs, climbing expenses layoffs and cost cutting across the sector throughout 2023, Stefanie Marotta reports. TD Bank’s Bharat Masrani, specifically, took a $1-million cut to his bonus pay in response to the bank’s continuing troubles with U.S. regulators.
CRA clarifies penalty relief rules for bare trust returns
The Canada Revenue Agency is saying it won’t apply penalties for Canadians who are late in complying with new tax filing obligations for trusts. Taxpayers being asked for the first time to share information about “bare trusts,” which often aren’t documented in writing, Erica Alini reports, as a means to increase transparency around trusts. The deadline to submit the required forms for the 2023 tax year is April 2, but the CRA said it won’t charge standard penalties for taxpayers who submit their 2023 bare trust returns after the deadline. Get more information about 2024 taxes at our topic page on the subject.
Now that you’re all caught up, test your knowledge with our weekly business and investing news quiz and prepare for the week ahead with the Globe’s investing calendar.
Abigale Subdhan