Birks Group 2018 Annual Report

ANNUAL REPORT 2018 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ‘ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2018 OR ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ‘ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report For the transition period from to Commission file number: 001-32635 BIRKS GROUP INC. (Exact name of Registrant as specified in its charter) Not Applicable (Translation of Registrant’s name into English) Canada (Jurisdiction of incorporation or organization) 2020 Robert-Bourassa Blvd. Montreal Québec Canada H3A 2A5 (Address of principal executive offices) Pat Di Lillo, 514-397-2592 (telephone), 514-397-2537 (facsimile) 2020 Robert-Bourassa Blvd. Suite 200 Montreal Québec Canada H3A 2A5 (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Class A Voting Shares, without nominal or par value NYSE American LLC Securities registered or to be registered pursuant to Section 12(g) of the Act: None. Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None. The number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the Annual Report was: 10,242,911 Class A Voting Shares, without nominal or par value 7,717,970 Class B Multiple Voting Shares, without nominal or par value 0 Series A Preferred Shares, without nominal or par value, issuable in series Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ‘ Yes È No If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. ‘ Yes È No Note: Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. È Yes ‘ No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). È Yes ‘ No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ‘ Accelerated filer ‘ Non-accelerated filer È Emerging Growth Company ‘ If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ‘ † The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012. Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP È International Financial Reporting Standards as issued by the International Accounting Standards Board ‘ Other ‘ If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: Item 17 ‘ Item 18 ‘ If this is an Annual Report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ‘ Yes È No TABLE OF CONTENTS Page Part I Item 1. Identity of Directors, Senior Management and Advisers .............................. 3 Item 2. Offer Statistics and Expected Timetable .......................................... 3 Item 3. Key Information ............................................................. 3 Item 4. Information on the Company ................................................... 14 Item 4A. Unresolved Staff Comments ................................................... 21 Item 5. Operating and Financial Review and Prospects ..................................... 21 Item 6. Directors, Senior Management and Employees ..................................... 42 Item 7. Major Shareholders and Related Party Transactions ................................. 52 Item 8. Financial Information ......................................................... 56 Item 9. The Offer and Listing ......................................................... 56 Item 10. Additional Information ....................................................... 57 Item 11. Quantitative and Qualitative Disclosures About Market Risk .......................... 63 Item 12. Description of Securities Other than Equity Securities ............................... 64 Part II Item 13. Defaults, Dividend Arrearages and Delinquencies .................................. 65 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds ............ 65 Item 15. Controls and Procedures ...................................................... 65 Item 16A. Audit Committee Financial Expert .............................................. 66 Item 16B. Code of Ethics .............................................................. 66 Item 16C. Principal Accountant Fees and Services .......................................... 66 Item 16D. Exemptions from the Listing Standards for Audit Committees ......................... 67 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers .................. 67 Item 16F. Change in Registrant’s Certifying Accountant ..................................... 67 Item 16G. Corporate Governance ........................................................ 67 Item 16H. Mine Safety Disclosure ....................................................... 67 Item 17. Financial Statements ......................................................... 67 Item 18. Financial Statements ......................................................... 67 Part III Item 19. Exhibits ................................................................... 68 i INTRODUCTION References Unless the context otherwise requires, the terms “Birks Group,” “the Company,” “we,” “us,” and “our” are used in this Annual Report to refer to Birks Group Inc., a Canadian corporation, and its subsidiaries on a consolidated basis. In addition, (i) the term “Mayors” refers to Mayor’s Jewelers, Inc., a Delaware corporation, and its wholly-owned subsidiary, Mayor’s Jewelers of Florida, Inc., a Florida corporation, until October 23, 2017, upon which date it was sold to a third party, and (ii) “the merger” refers to the merger of Mayors with a wholly-owned subsidiary of the Company, as approved by the stockholders on November 14, 2005. The term “Birks” refers to Henry Birks & Sons Inc., the legal name of Birks Group prior to the merger. Presentation of Financial and Other Information The consolidated financial statements of Birks Group contained in this Annual Report are reported in United States (“U.S.”) dollars and have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. Unless otherwise indicated, all monetary references herein are denominated in U.S. dollars; references to “dollars” or “$” are to U.S. dollars and references to “CAD$” or “Canadian dollars” are to Canadian dollars. Throughout this Annual Report, we refer to our fiscal year ending March 31, 2018, as fiscal 2018, and our fiscal years ended March 25, 2017 and March 26, 2016, as fiscal 2017 and fiscal 2016, respectively. Our fiscal year ends on the last Saturday in March of each year. The fiscal year ended March 31, 2018 consisted of 53 weeks. The fiscal years ended March 25, 2017, and March 26, 2016 consisted of 52 weeks with four thirteen- week periods. Significant Transaction On August 11, 2017, the Company entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Aurum Holdings Ltd., a company incorporated under the laws of England and Wales, which assigned its rights and obligations under the Purchase Agreement to Aurum Group USA, Inc., a Delaware corporation (“Aurum”) to sell its wholly-owned subsidiary, Mayors. Pursuant to the terms and conditions of the Stock Purchase Agreement, at the closing, Aurum acquired 100% of the outstanding equity interests of Mayors. The sale transaction closed on October 23, 2017 for total cash consideration of $106.8 million, net of closing adjustments (the

Load more