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All figures introduced herein are in Canadian {dollars}.
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MONTREAL — Birks Group Inc. (the “Firm”, “Birks Group” or “we”) (NYSE American LLC: BGI) is happy to announce that, additional to its June 9, 2025 announcement, it has accomplished the acquisition (the “Acquisition”) of the luxurious watch and jewelry enterprise of European Boutique (“European”) from its founders, the Sutkiewicz household, for a purchase order worth of $9,000,000, topic to customary changes.
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Headquartered in Toronto, European operates shops on the Yorkdale, Sq. One, Toronto Eaton Heart and Sherway Backyard malls, consisting of 4 European Boutique multi-brand luxurious watch and jewelry shops, three mono-brand boutiques for luxurious manufacturers OMEGA, Breitling, and Montblanc, in addition to built-in storefronts for luxurious manufacturers equivalent to TAG Heuer, GUCCI, and Diamonds Direct. Along with its brick-and-mortar shops, European operates a nationwide e-commerce web site at European.ca which gives a wide array of watches and jewelry throughout Canada. As part of the Acquisition, Birks Group has additionally entered right into a licensing settlement to function the Canadian model Diamonds Direct® (DiamondsDirect.ca).
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Jean-Christophe Bédos, President and CEO of Birks Group, commented: “We’re delighted to finish the acquisition of European. The European shops have prime areas in essential malls within the Higher Toronto Space and carry high-end luxurious manufacturers which can complement Birks Group’s providing. We now enter right into a interval of transition the place we shall be liaising carefully with the European workforce and we look ahead to welcoming Jordan Sutkiewicz, Michelle Ceresney and European’s staff to the Birks household.”
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Prime Tales
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Eric Sutkiewicz, Lynn Sutkiewicz, Jordan Sutkiewicz and Michelle Ceresney, the previous homeowners of European, commented: “After practically 50 fantastic years of serving our loyal purchasers, we’re proud to have offered our household enterprise to Birks Group, a well-respected and trusted pan-Canadian retailer of advantageous jewelry, watches and presents that shares the identical dedication to high quality and customer support as European. We want to thank all of our workforce, colleagues, companions and buddies at European for his or her dedication and help. We want them a lot success below the management of Birks Group.”
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In reference to the Acquisition and as beforehand introduced, Birks Group additionally obtained an extra time period mortgage of $13.5 million (the “Incremental Mortgage”) with SLR Credit score Options (“SLR”), one of many Firm’s present senior lenders. The Incremental Mortgage bears curiosity on the similar charge as our present $12.5 million time period mortgage with SLR which is CORRA plus (i) a CORRA adjustment of 0.32% and (ii) 7.75%, and it will likely be repayable, in full, on December 24, 2026. A portion of the proceeds from the Incremental Mortgage had been utilized by the Firm to fund the acquisition worth for the Acquisition and the stability of the proceeds shall be used to fund atypical course working capital. The Firm additionally entered right into a mortgage settlement for $3.75 million of further indebtedness (the “Mortgage Settlement”) with Mangrove Holding S.A., one of many Firm’s controlling shareholders. The Mortgage Settlement bears annual curiosity at 15% and it will likely be repayable, in full, on December 24, 2026. The proceeds from the Mortgage Settlement shall be used to fund atypical course working capital.
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Rebecca Tarby, Senior Managing Director of SLR, commented: “Birks Group and SLR have loved a long-term enterprise relationship for over 15 years, and we’re happy to help Birks Group’s continued progress and success.”
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The Firm continues to be actively engaged in figuring out different transactions to proceed pursuing its strategic objectives together with elevating further funds by public or personal fairness, debt financing, and the completion of strategic acquisitions.
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About Birks Group Inc.
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Birks Group is a number one designer of advantageous jewelry and an operator of luxurious jewelry, timepieces and presents retail shops in Canada. The Firm operates 17 shops below the Maison Birks model in most main metropolitan markets in Canada, one retail location in Montreal below the Birks model, one retail location in Montreal below the TimeVallée model, one retail location in Calgary below the Brinkhaus model, one retail location in Vancouver below the Graff model, one retail location in Vancouver below the Patek Philippe model, and three retail areas in Laval, Ottawa and Toronto below the Breitling model. Birks was based in 1879 and has grow to be Canada’s premier designer and retailer of advantageous jewelry, timepieces and presents. Extra info could be discovered on Birks’ website, www.birks.com.
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About European Boutique
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European Boutique is a luxurious retailer of watches, jewelry and diamonds with a nationwide e-commerce platform and brick-and-mortar shops all through the Higher Toronto Space. European operates 4 shops below the European Boutique trade-name, three mono-brand boutiques in partnership with OMEGA, Breitling and Montblanc, storefronts on behalf of manufacturers equivalent to TAG Heuer, GUCCI, and Diamonds Direct ( DiamondsDirect.ca), in addition to a nationwide e-commerce web site, www.European.ca.About SLR Credit score Options SLR Credit score Options (f/okay/a Crystal Monetary), a portfolio firm of SLR Funding Corp., is a number one supplier of direct personal credit score targeted on originating, underwriting, and managing asset-based financings.
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Ahead Trying Statements
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This press launch comprises “forward-looking” statements relating to, amongst different issues, using proceeds of the Incremental Mortgage and the Mortgage Settlement past the acquisition worth. Ahead trying statements could be recognized, for instance, by their use of phrases equivalent to: “plans,” “expects,” “believes,” “will,” “anticipates,” “intends,” “tasks,” “estimates,” “may,” “would,” “could,” “deliberate,” “aim,” and different phrases of comparable which means. All statements that deal with expectations, potentialities or projections in regards to the future and all statements on this press launch aside from statements of historic truth are forward-looking statements.
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As a result of such statements embody varied dangers and uncertainties, precise outcomes would possibly differ materially from these projected in forward-looking statements. Accordingly, the reader mustn’t place undue reliance on forward-looking statements. Dangers and uncertainties embody, however aren’t restricted to the next: (i) we could also be unable to take care of and procure adequate sources of liquidity to fund our operations, to attain deliberate gross sales, gross margin and internet revenue, to maintain prices low, to implement our enterprise technique, to take care of relationships with our main distributors, to supply uncooked supplies, to mitigate fluctuations within the availability and costs of the Firm’s merchandise, to compete with different jewellers, to reach its advertising initiatives (together with with respect to Birks branded merchandise), and to have a profitable customer support program, all of which may have an effect on our capability to execute our strategic imaginative and prescient; (ii) we could also be unable to put money into and finance capital expenditures; (iii) we could also be unable to take care of our itemizing on the NYSE American alternate or to record our shares on one other nationwide securities alternate; and (iv) our capability to proceed as a going concern.
