Gildan Activewear Inc. CEO Glenn Chamandy, from left to right, with chairman Michael Kneeland and Browning West partner Peter Lee following their annual meeting in Montreal on May 28.Christinne Muschi/The Canadian Press
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 proxy fight racked up US$77-million in expenses
How much did the nasty proxy battle that plunged Gildan Activewear Inc. into turmoil for nearly six months cost? US$76.8-million, including US$33-million in legal and advisory fees. The Canadian company published a financial accounting of the battle that climaxed this past spring between Gildan’s former board of directors and a group of shareholders led by U.S. investment firm Browning West, and ended with the return of chief executive Glenn Chamandy. Nicolas Van Praet reports that millions were spent on lawyers, strategic advisers and consultants of all kinds as well as severance for departed executives. “It was an abusive amount of money being spent,” Mr. Chamandy said in an interview with The Globe and Mail.
The promise of Windsor’s $6.4-billion new link to the U.S.
Will Windsor’s Gordie Howe International Bridge live up to the economic hype — and $6.4-billion price tag? Jason Kirby set out to understand the goals for the highly anticipated bridge that will link Windsor to Detroit by speaking to business owners, policy makers and residents. Slated to open to traffic in September, 2025, the new bridge is emblematic of a wider rebirth of the Windsor economy in recent years. It is expected to provide an adrenalin shot to the regional economy, while also reshaping the very face of the two cities it touches. But the world of trade has changed a lot since 2015, when the Gordie Howe International Bridge got its name, and we’re now entering a time when Canada-U.S. trade faces rising protectionist pressure.
Changes to capital-gains taxation to bring in $17.4-billion over five years: PBO
According to new Parliamentary Budget Officer estimates, the federal government’s capital-gains tax changes will generate $17.4-billion in revenue over five years. That’s about $2-billion less than the federal government signalled in the April federal budget. The PBO also said that corporations would account for roughly two-thirds – or $11.7-billion – of the increase in tax revenues over the five-year span, with the remainder coming from individuals. Matt Lundy takes a closer look at the figures in this week’s Decoder.
Scammers can avoid paying penalties to securities regulators by declaring bankruptcy, Supreme Court rules
The Supreme Court of Canada ruled earlier this week that financial criminals can avoid punitive fines from securities regulators by declaring bankruptcy. The judgment reversed two lower court decisions, ending a decade-long legal saga. It also places substantial limits on the power of market watchdogs across Canada. The case is critical for securities regulators who struggle to collect many of the fines they impose on people who commit fraud and other violations, Jameson Berkow reports. The decision could “permit bankrupts to benefit from their dishonesty through a release of liability, even when the debt directly results from the specific misconduct targeted by Parliament,” two Supreme Court Justices warned in a dissenting opinion.
The devastation in Jasper highlights the impact of more damaging wildfires on Canadian tourism
A Morningstar DBRS report estimates the insured losses of the Jasper wildfire could top $700-million, with tourism businesses making additional claims, Jeffrey Jones and Emma Graney report. That would make it Canada’s second-costliest wildfire after the 2016 inferno in Fort McMurray, Alta. Jasper lost 30 per cent of its structures in the blaze, and there’s no timeline yet for the return of residents. The potential danger, and the overall unpleasantness of poor air quality, is also taking a toll on the region’s tourism industry: “There’s going to be a quite a large expense in rebuilding, and that’s going to cause some challenges for businesses that were really just starting to be in a good place following the tumultuous years of the pandemic,” said Beth Potter, CEO of the Tourism Industry Association of Canada.
Chinese EV maker BYD tells Ottawa it plans to enter Canadian market
China’s BYD Co., an electric-vehicle manufacturing company, is looking to enter the Canadian market, according to a filing with a federal regulator. The request comes as Deputy Prime Minister Chrystia Freeland is considering proposals to impose significant duties on Chinese-made EVs. It poses a difficult decision for Ottawa, seeing that Chinese brand vehicles aren’t selling in Canada yet, along with pressure to follow the United States and the European Union to impose large tariffs on Chinese EV makers in an effort to protect local jobs, Steven Chase reports.
Take our business quiz for the week of August 2
a. Declaring bankruptcy. The judgment reversed two lower court decisions. It further constrains the power of market watchdogs, which already struggle to collect many of the fines they impose.
Get the rest of the questions from the weekly business and investing news quiz here, and prepare for the week ahead with The Globe’s investing calendar.