Birks Group has secured a new $32.5-million senior secured term loan and extended its revolving credit facility, providing additional liquidity to support store renovations, digital commerce initiatives and other growth investments, said the company.

The luxury jeweller announced it has signed a five-year term loan facility with an affiliate of Gordon Brothers that matures in June 2031, refinancing its existing $26-million senior secured term loan, which has been repaid in full. At the same time, Birks amended and extended its revolving credit facility with Wells Fargo Canada Corporation to June 2031, increasing total commitments to $93 million from $90 million.

Birks said the new financing arrangements provide greater financial flexibility and longer debt maturities while supporting strategic initiatives, including store renovations, omni-channel capabilities, digital-commerce investments and working-capital needs. Birks also amended and extended a $3.75-million shareholder loan from Mangrove Holding S.A. to June 2031.

“We are pleased to complete the refinancing of our term loan with Gordon Brothers and an extension of our revolver with Wells Fargo,” said Niccolò Rossi di Montelera, executive chairman of the board and interim CEO of Birks. “These new five-year credit facilities extend our debt maturities and provide us with increased financial flexibility as we continue to implement development strategies to generate sales growth and focus on driving profitable growth.”

Chad Simon, senior managing director of transactions at Gordon Brothers, said the lender’s deep expertise in the luxury retail sector and long-standing relationship with the jeweller allowed it to provide a financing solution that delivers unmatched liquidity and flexibility to support Birks’ operations and long-term growth.”

Peter Foley, director at Wells Fargo Capital Finance, said its financing is designed to maintain the financial flexibility that Birks needs to pursue its growth strategy.

Montreal-based Birks is a designer and retailer of fine jewellery, luxury timepieces and gifts. Founded in 1879, the company operates 32 retail locations across Canada under brands that include Maison Birks, Brinkhaus, Breitling, Omega, Montblanc, Patek Philippe and Chaumet.

Gordon Brothers is a Boston-based asset advisory, lending, financing and trading firm founded in 1903. The company provides liquidity and asset-based solutions to businesses across the retail, industrial, real estate and brand sectors, with operations spanning North America, Europe, the Middle East, Africa and Asia-Pacific.

Photo: CNW Group/Birks