Birks & Mayors entered into a lease agreement on July 24 with Varilease Finance, which will finance up to $3 million of remodeling costs for three Mayors stores in Florida.
The Florida stores are being transformed to fit the company’s new “shop in shop” format, which it said was launched last year with “great success.”
Birks & Mayors also announced it has entered into nonbinding proposals with lenders with regard to a new credit facility and existing credit agreements. The new proposals will increase the amount of the company’s credit facilities to up to $15 million and extend the maturity of certain credit facilities by several years. The proposals are expected to be finalized over the next month.
“This modified financing structure, if consummated, will significantly reduce [our] level of liquidity risk…and will provide funding for critical investments,” said Mike Rabinovitch, Birks & Mayors executive vice president and chief financial officer, said in a statement.