Birks has borrowed CAD 13.5 million ($9.9 million) from one of its senior lenders to purchase a number of Canadian jewelry stores as well as to fund its regular business.
The Canada-based jeweler did not identify the stores it wished to buy, nor did it disclose if it was acquiring a chain or several separate brands, but it did note it had already entered into a share agreement for the purchase. The shops are located in a Canadian province where Birks already operates its own stores, the jeweler said recently.
The loan, from SLR Credit Solutions, is repayable in full in December 2026. Meanwhile, Birks has also borrowed an additional CAD 3.8 million ($2.7 million) from Mangrove Holding, one of its controlling shareholders. That money, which it will use as working capital to run the business, is due at the same time.
This would not be the company’s first jewelry brand outside the Birks label. It previously owned Mayors Jewelers, which it sold to UK-based Aurum Holdings for $106.8 million in 2018 to strengthen its bottom line. The jeweler also operates several retail locations outside its 18 Birks stores, including one under the TimeVallée brand and one Brinkhaus shop.
Birks is looking to continue to expand its footprint and is searching for alternative ways to raise money.
“The company continues to be actively engaged in identifying alternative transactions to continue pursuing its strategic goals, including raising additional funds through public or private equity, debt financing, and the completion of strategic acquisitions or divestitures,” it added.
Image: A Birks store in Montreal. (Birks)
