Canadian luxury jeweler Birks has secured up to $17.25 million in new funding to support the acquisition of jewelry stores and to strengthen its financial position.
In a statement on Monday, the company announced that it had signed a commitment letter with SLR Credit Solutions, one of its senior lenders, for an additional term loan of $13.5 million. Mangrove Holding S.A., a major shareholder in Birks, has also committed to provide $3.75 million in subordinated debt financing.
The funds will be used to acquire jewelry stores in a Canadian province where Birks already operates. A portion will also support the company’s day-to-day working capital needs.
Birks said the deal is part of its broader strategy to expand its presence and improve its financial stability. However, it cautioned that the acquisition and financing agreements are not yet finalized and may not be completed.
“Birks continues to explore other strategic opportunities to achieve its goals,” the company said. “These may include raising more capital through public or private offerings, debt financing, or further acquisitions or divestitures.”
Birks currently runs 18 Maison Birks stores in major cities across Canada. It also operates a Birks-branded store and a TimeVallée location in Montreal, a Brinkhaus store in Calgary, a Graff and a Patek Philippe boutique in Vancouver, and three Breitling boutiques in Laval, Ottawa, and Toronto.
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