Birks Buys Canadian Diamond-Jewelry Chain for Nearly $7M

Birks Group has acquired the Canada-based European Boutique from its founders the Sutkiewicz family for CAD 9 million ($6.6 million). 

The jeweler will operate four European Boutique multi-brand stores that sell luxury watches and jewelry, the company said Tuesday. The purchase also includes three mono-brand boutiques for exclusive labels Omega, Breitling, and Montblanc, along with integrated storefronts featuring luxury brands such as TAG Heuer, Gucci, and Diamonds Direct. 

In addition to the physical stores, European also operates a national e-commerce website.  As part of the acquisition, Birks has entered into a licensing agreement to operate the Diamonds Direct brand in Canada. 

“The European stores have prime locations in important malls in the Greater Toronto area and carry high-end luxury brands which will complement Birks Group’s offering,” said Birks CEO Jean-Christophe Bédos. “We now enter into a period of transition where we will be liaising closely with the European team and we look forward to welcoming Jordan Sutkiewicz, Michelle Ceresney and European’s employees to the Birks family.” 

Last month, Birks borrowed CAD 13.5 million ($9.9 million) from one of its senior lenders, SLR Credit Solutions, to cover the purchase of the stores. It received an additional CAD 3.8 million ($2.8 million) sum from Mangrove Holding, one of the company’s controlling shareholders, to use as capital to run the business. The loans are repayable in full by the end of 2026. 

The company remains actively focused on exploring alternative transactions to advance its strategic goals, including securing additional funding through public and private equity, debt financing, and achieving strategic acquisitions, it commented. 

Image: A European Boutique store at CF Toronto Eaton Centre. (European Boutique)