Montreal-based Birks Group Inc. (TSX: BGI) has received a non-compliance notice from the NYSE American LLC, raising concerns about its future on the exchange. The notice, issued on February 25, 2025, cites Birks’ failure to meet the stockholders’ equity thresholds outlined in Sections 1003(a)(i) and (ii) of the NYSE American Company Guide.
Breaking Down the Compliance Issues
Birks reported a stockholders’ deficit of U.S. $(6.1) million (CAD $(8.2) million) as of September 28, 2024. Under the NYSE American’s listing standards:
- Companies must maintain at least U.S. $2.0 million in stockholders’ equity if they have reported losses in two of the last three fiscal years.
- Companies must maintain at least U.S. $4.0 million in stockholders’ equity if they have reported losses in three of the last four fiscal years.
Since Birks does not qualify for any exemptions, it must now submit a compliance plan by March 27, 2025, outlining how it intends to meet listing requirements by August 25, 2026.
What This Means for Birks and the Jewellery Industry
Despite the notice, Birks’ Class A voting shares (BGI) remain listed and tradeable on the NYSE American. The luxury jeweller emphasizes that this notice does not impact its business operations, liquidity, or financial reporting obligations. However, investors and industry stakeholders will closely watch Birks’ next moves, as failure to submit or adhere to a compliance plan could result in delisting proceedings.
Birks has long been a staple in the Canadian jewellery landscape, and its ability to navigate these financial hurdles will be key in maintaining investor confidence and its competitive position in the market.
Stay tuned for further updates as Birks works to regain compliance and solidify its financial standing.
