NEW YORK — Mayor’s Jewelers Inc. said Tuesday that it has pushed back the deadline for a financing agreement with Henry Birks & Sons Holdings to June 21, due to undisclosed “internal and external matters” at both firms.
This story first appeared in the June 13, 2002 issue of WWD. Subscribe Today.
The troubled jewelry chain also said its agreement with Birks has been amended to permit pursuit of a “substantial investment” offer from Steel Partners II LP, an investment group based in New York.
As reported, Mayor’s has been seeking cash investments and is expected to receive $11.5 million from Birks, the Canadian retail jewelry chain. Upon completion of the deal, Birks will receive preferred Mayor’s stock that will be convertible to 58 percent of the company’s fully diluted common stock. In addition, Birks also will be able to elect a majority of Mayor’s board of directors and the two companies will enter a series of agreements under which Birks will provide management, merchandising and sales support to Mayor’s.
After announcing the agreement with Birks, Mayor’s received $67.5 million in debt financing from FleetBoston Financial Corp., a move which the jeweler’s management said will help a great deal in its restructuring efforts.