Birks Group Completes the Acquisition of the Watch and Jewelry Enterprise of European Boutique and Associated Debt Financing Amendments

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 value of $9,000,000, topic to customary changes.

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).

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 necessary malls within the Higher Toronto Space and carry high-end luxurious manufacturers which is able to 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 sit up for welcoming Jordan Sutkiewicz, Michelle Ceresney and European’s staff to the Birks household.”

Eric Sutkiewicz, Lynn Sutkiewicz, Jordan Sutkiewicz and Michelle Ceresney, the previous house owners of European, commented: “After almost 50 fantastic years of serving our loyal shoppers, we’re proud to have bought our household enterprise to Birks Group, a well-respected and trusted pan-Canadian retailer of fantastic jewelry, watches and items that shares the identical dedication to high quality and customer support as European. We wish to thank all of our workforce, colleagues, companions and pals at European for his or her dedication and help. We want them a lot success beneath the management of Birks Group.”

In reference to the Acquisition and as beforehand introduced, Birks Group additionally obtained a further 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 identical fee 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 value for the Acquisition and the steadiness of the proceeds shall be used to fund strange 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 strange course working capital.

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.”

The Firm continues to be actively engaged in figuring out various transactions to proceed pursuing its strategic targets together with elevating further funds by public or personal fairness, debt financing, and the completion of strategic acquisitions.

Birks Group is a number one designer of fantastic jewelry and an operator of luxurious jewelry, timepieces and items retail shops in Canada. The Firm operates 17 shops beneath the Maison Birks model in most main metropolitan markets in Canada, one retail location in Montreal beneath the Birks model, one retail location in Montreal beneath the TimeVallée model, one retail location in Calgary beneath the Brinkhaus model, one retail location in Vancouver beneath the Graff model, one retail location in Vancouver beneath the Patek Philippe model, and three retail areas in Laval, Ottawa and Toronto beneath the Breitling model. Birks was based in 1879 and has turn into Canada’s premier designer and retailer of fantastic jewelry, timepieces and items. Further data may be discovered on Birks’ web page, www.birks.com.

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 beneath 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/ok/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.