NEW YORK — Mayor’s Jewelers Inc. reported Monday that its $11.5 million financing agreement in principle signed May 17 with Henry Birks & Sons Holdings is off due to the companies’ failure to sign definitive agreements by the June 21 deadline.
While Mayor’s and the Canada-based jewelry retailer will continue to try to execute the definitive agreements, Mayor’s is now searching for another party to take an equity interest in the troubled company.
“While it is regrettable that we could not complete the definitive agreements by deadline, the expiration of the agreement gives Mayor’s the flexibility to explore other opportunities while continuing to work closely with Birks,” said chief financial officer David Boudreau in a statement.
Upon completion of the deal, Birks would have received preferred Mayor’s stock that would have been convertible to 58 percent of the company’s fully diluted common stock. In addition, Birks also would have been able to elect a majority of Mayor’s board of directors.”