Birks Group, the Montreal-based luxury jeweller with a deep national footprint, has completed the acquisition of Toronto’s European Boutique in a strategic move that strengthens its retail presence in Canada’s largest market. The $9-million transaction includes four premium mall-based locations, three mono-brand boutiques, a growing e-commerce business, and the rights to operate the Diamonds Direct brand in Canada.
President and CEO of Birks Group, Jean-Christophe Bédos, described the deal as “a long time in the making,” adding that the acquisition stemmed from a shared vision and values between the two businesses. “It took long. This acquisition took a long time,” said Bédos in an interview with Retail Insider. Owner Eric Sutkiewicz decided he wanted to retire. That was the trigger. Then we had to learn about each other and build trust.”
Strategic Growth in the GTA
The acquisition sees Birks gain immediate access to four of the most productive shopping centres in the Greater Toronto Area: Yorkdale Shopping Centre, CF Sherway Gardens, CF Toronto Eaton Centre, and Square One in Mississauga. All four locations are home to European Boutique’s well-established luxury watch and jewellery storefronts, with Yorkdale also hosting mono-brand boutiques for Omega and Breitling.
“This is ideal for us,” said Bédos. “Toronto is the number one market in Canada for our business. By adding four stores and several mono-brand boutiques, we’re expanding our reach significantly.”
European Boutique also brings integrated storefronts for brands like Montblanc, TAG Heuer, Gucci, and Diamonds Direct. These shop-in-shop concepts have allowed the retailer to build a strong reputation among luxury watch and jewellery enthusiasts. “The European clients are loyal to European. So, we don’t feel an urge to change the name above the door,” Bédos explained. “We want to honour that relationship.”
Diamonds Direct Licensing Agreement
A notable component of the acquisition is Birks Group’s new licensing agreement to operate the Diamonds Direct brand in Canada. The Sutkiewicz family introduced Diamonds Direct to the GTA market through European Boutique stores beginning in 2021, offering both natural and lab-grown diamonds under a radically transparent pricing model.
“It’s their brand,” said Bédos. “We signed a licensing agreement to distribute Diamonds Direct, and for now, that will stay within European stores. Over time, we’ll learn about the brand and its customer base to determine expansion opportunities.”
Diamonds Direct showrooms are currently located inside each of European Boutique’s four GTA stores, offering a dedicated, immersive retail experience. The brand emphasizes industry-insider pricing, fair margins, and a modern customer journey. Bédos noted that while no immediate changes are planned, Birks will observe and evaluate opportunities for wider national growth.
Respecting Heritage, Planning for the Future
Founded nearly 50 years ago, European Boutique has remained a family business, led by Eric Sutkiewicz and later his children, Jordan Sutkiewicz and Michelle Ceresney. As part of the transition, both Jordan and Michelle will remain with the company for a period of time in consulting roles to ensure continuity.
“They’ll help us with the integration,” Bédos said. “After that, they’ll decide what they want to do, and we respect their wishes.”
The transition will prioritize maintaining customer experience and team morale. “We’re not here to revolutionize and dictate,” said Bédos. “Too many acquisitions fail because someone comes in thinking they’re better or stronger. That’s not our approach. We want to learn and integrate organically.”
European’s retail teams will remain in place during the transition period. The goal, Bédos explained, is for customers to continue shopping without disruption while Birks quietly strengthens operations in the background.
Enhanced E-Commerce Reach
Birks also plans to integrate European Boutique’s online presence into its robust national e-commerce platform. Currently operating at European.ca, the site will benefit from Birks’ digital infrastructure and customer service resources.
“We probably have the strongest e-commerce platform in Canada in our industry,” Bédos said. “European will benefit from our reach, and we’ll integrate their website into our own.”
This digital integration aligns with Birks’ omnichannel strategy, expanding both companies’ ability to serve luxury customers across Canada through online and in-store channels.
Return to Square One and CF Toronto Eaton Centre
Birks Group had previously exited some of the mall locations now regained through this acquisition. The return to Square One and CF Toronto Eaton Centre is a strategic re-entry into high-traffic environments with proven demand for luxury goods.
“These are strong malls,” said Bédos. “The Yorkdale store is a fabulous location, and we can live with a European Boutique and a Birks store operating nearby. It’s about market share and footprint.”
At Square One, European Boutique underwent significant renovations in 2021–2022 to create dedicated storefronts for Breitling and TAG Heuer. Similarly, the CF Toronto Eaton Centre location was overhauled in 2018, adding boutique spaces for Breitling, Montblanc, and Zenith. These updated formats, with gold fixtures, marble floors, and bold brand facades, align well with Birks’ premium positioning.
Recent Expansion Activity by Birks
The acquisition of European Boutique follows other recent expansion moves by Birks Group, including the 2023 acquisition of TimeVallée Canada and the continued rollout of mono-brand boutiques for Graff, Patek Philippe, and Breitling in key Canadian cities. In addition, the Brinkhaus banner continues to operate under Birks ownership in Calgary, and a new flagship is planned for the much-anticipated Oakridge redevelopment in Vancouver.
The Bloor-Yorkville Birks was slated for closure in early 2025, and things have since changed. The Birks store at 55 Bloor Street West in Toronto’s Manulife Centre remains open after some uncertainty in recent months. “Our landlord seems happy to have us there,” he said. “There’s no plan to close yet.”
Financial Terms and Strategic Positioning
To finance the European Boutique acquisition, Birks secured a $13.5 million incremental term loan from long-time lender SLR Credit Solutions. An additional $3.75 million loan was obtained from Mangrove Holding S.A., a controlling shareholder. These funds will support both the purchase and ongoing working capital needs.
Rebecca Tarby, Senior Managing Director at SLR, commented in the press release: “Birks Group and SLR have enjoyed a long-term business relationship for over 15 years, and we are pleased to support Birks Group’s continued growth and success.”
This acquisition solidifies Birks’ dominance in Canadian luxury jewellery retail and also sends a message to other independent retailers considering succession. “We want to make people feel comfortable that they have a home should they decide to retire and sell,” said Bédos. “It’s an anxiety for independent retailers. Birks can be a good home for their story.”
Outlook for Further Expansion
While Bédos declined to speculate on future acquisitions due to the company’s public listing, he noted that the door remains open. “You never know,” he said. “There are great independent retailers out there. And we’ve shown we can be respectful stewards of those businesses.”
With the acquisition of European Boutique now complete, Birks has strengthened its position in the critical Greater Toronto Area, enhanced its multi-brand and mono-brand offerings, and expanded its digital and omnichannel capabilities. As Bédos put it: “It’s all about being client-focused.”
The Bloor Street Birks is one of the least appealing stores in the neighbourhood, and would not be out of place in any suburban mall. It would be nice if they raised their game in what is one of the most important luxury nodes in Canada.