SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13a-16 or 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2020
Commission file number: 001-32635
BIRKS GROUP INC.
(Translation of Registrants name into English)
2020 Robert Bourassa
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
☒ Form 20-F ☐ Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
The following document of the Registrant is submitted herewith:
|99.1||Press Release dated April 20, 2020.|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|BIRKS GROUP INC.|
|By:||/s/ Miranda Melfi|
|Date: April 21, 2020||Vice President, Human Resources, Chief Legal Officer and Corporate Secretary|
|Exhibit 99.1||Press release dated April 20, 2020.|
Vice President and Chief Financial Officer
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BIRKS GROUP ANNOUNCES ACTIONS TO ADDRESS FINANCIAL IMPACTS OF COVID-19
Montreal, Quebec. April 20, 2020Birks Group Inc. (the Company or Birks Group) (NYSE American: BGI) announced today that the COVID-19 pandemic has adversely impacted, and is expected to continue to adversely impact, the Companys operations for at least as long as the Companys stores remain closed. As previously announced, the Companys stores have been closed across Canada since March 18, 2020. As a result of these store closures, the Company has experienced significant declines in sales, including a year-over-year decline of approximately 70% for the period from March 18 to April 16, 2020. Government officials and public health professionals at both the Federal and Provincial levels in Canada have recently extended store closures and social distancing guidelines to protect Canadians, and therefore the Companys stores will remain closed until further notice in accordance with government directives. The Company continues to offer concierge services by telephone and to operate its e-commerce business as certain provincial governments have designated e-commerce as an essential service which, along with the operations in support thereof, are allowed to operate.
In these unprecedented and challenging times, all of the Maison Birks stores remain closed, contributing to a significant decline in revenue, said Jean-Christophe Bédos, Birks Groups President and Chief Executive Officer. This unanticipated situation has forced us to make
difficult decisions to ensure that Birks Group is positioned to emerge from this global crisis. The strength of our brand and the steps we have taken, will enable us to weather this storm.
As a result of these developments, Birks Group has taken various actions in an attempt to mitigate the financial impact of COVID-19. The Company has temporarily laid off over 80% of its employees without pay, implemented temporary base salary reductions of 20% for its executive officers and reduced its workweek by 20% for most of those employees who remain active. The Company will continue to provide health benefits to its employees who have been temporarily laid off.
Birks Group has also taken actions to reduce its marketing expenses by approximately 57% for the first quarter of fiscal year 2021, significantly reduced its discretionary spending, negotiated extended credit terms with its vendors and rent relief with its landlords, and postponed over $2.4 million of capital expenditures through the first quarter of fiscal year 2021. The Companys Board of Directors has also temporarily reduced its compensation by 20%.
Birks Groups business is particularly sensitive to reductions in discretionary spending by consumers. To date, this outbreak has caused, and is continuing to cause, significant disruption in the financial markets both globally and in Canada, which could lead to a decline in discretionary spending by consumers, and which could in turn impact, possibly materially, the Companys business, sales, financial condition and results of operations. The Company cannot predict the degree to, or the time period over, which its sales and operations will be affected by this outbreak, and the effects could be material. The Company continues to operate through its revolving credit facility, but COVID-19 has resulted in significant disruption of global financial markets, which could have a negative impact on the Companys ability to access capital in the future. Given the uncertainty in the circumstances, the Company is pursuing other actions to enhance its liquidity position, which could include entering into new credit facilities, to the extent available.
Birks Group continues to monitor this situation closely, and will take decisive and measured action as appropriate based on guidance provided by governmental authorities. In these circumstances, there may be developments outside of the Companys control requiring it to adjust its operating plan. The further spread of COVID-19, and the requirements to take action to limit the spread of the illness, will impact the Companys ability to carry out its business as usual and may materially adversely impact global economic conditions, the Companys business, results of operations and financial condition.
The Maison Birks flagships stores in Montréal, Toronto and Vancouver, as well as the Brinkhaus store (Calgary) and Graff & Patek Philippe (Vancouver) stores, are closed. However, we have a concierge service that is available for clients who need assistance. Clients are able to continue shopping from their home either at MaisonBirks.com or by phone at +1 (855) 873-7373 and benefit from direct complimentary shipping to their door.
About Birks Group Inc.
Birks Group is a leading designer of fine jewelry, timepieces and gifts and operator of luxury jewelry stores in Canada. The Company operates 27 stores under the Maison Birks brand in most major metropolitan markets in Canada, one retail location in Calgary under the Brinkhaus brand and two retail locations in Vancouver under the Graff and Patek Philippe brands. Birks Collections are available at Mappin & Webb and Goldsmiths in the United Kingdom in addition to several jewelry retailers across North America. Birks was founded in 1879 and has become Canadas premier retailer and designer of fine jewelry, timepieces, and gifts. Additional information can be found on the Companys web site, www.birks.com
Forward Looking Statements
This press release contains certain forward-looking statements. Given such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward-looking statements and no assurance can be given that we will meet the results projected in the forward looking statements. These risks and uncertainties include, but are not limited to the following: (i) the magnitude and length of economic disruption as a result of the worldwide COVID-19 outbreak, including its impact on macroeconomic conditions, generally, as well as its impact on the results of operations and financial condition of the Company and the trading price of its shares, (ii) economic, political and market conditions, including the economies of Canada and the U.S., which are adversely affecting the Companys business, operating results or financial condition, including its revenue and profitability, through the impact of changes in the equity markets and decreases in consumer discretionary spending, and, the lack of store traffic and tourism; (iii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Companys costs and expenses; (iv) the Companys ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to mitigate fluctuations in the availability and prices of the Companys merchandise, to compete with other jewelers, to succeed in its marketing initiatives, and to have a successful customer service program and (v) the Companys ability to execute its strategic vision. Information concerning factors that could cause actual results to differ materially are set forth under the captions Risk Factors and Operating and Financial Review and Prospects and elsewhere in the Companys Annual Report on Form 20-F filed with the Securities and Exchange Commission on June 24, 2019 and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.