Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 26, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Mar. 26, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Trading Symbol | BGI |
Entity Registrant Name | BIRKS GROUP INC. |
Entity Central Index Key | 1,179,821 |
Current Fiscal Year End Date | --03-26 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Class A Common Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,242,911 |
Class B Common Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 7,717,970 |
Series A Preferred Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 2,344 | $ 2,356 | |
Accounts receivable | 10,293 | 7,696 | |
Inventories | 137,839 | 135,739 | |
Prepaids and other current assets | 1,793 | 2,232 | |
Total current assets | 152,269 | 148,023 | |
Property and equipment | 29,419 | 28,544 | |
Intangible assets | 792 | 917 | |
Other assets | 2,160 | 2,720 | |
Total non-current assets | 32,371 | 32,181 | |
Total assets | 184,640 | 180,204 | |
Current liabilities: | |||
Bank indebtedness | 63,209 | 64,347 | |
Accounts payable | 46,730 | 44,740 | |
Accrued liabilities | 9,040 | 8,079 | |
Current portion of long-term debt | 5,670 | 4,745 | |
Total current liabilities | 124,649 | 121,911 | |
Long-term debt | 47,504 | 52,039 | |
Other long-term liabilities | 4,783 | 3,431 | |
Total long-term liabilities | $ 52,287 | $ 55,470 | |
Commitments and Contingencies | |||
Stockholders' equity: | |||
Common stock | $ 69,601 | $ 69,601 | |
Preferred stock - no par value, unlimited shares authorized, none issued | [1] | ||
Additional paid-in capital | $ 16,216 | $ 16,107 | |
Accumulated deficit | (78,849) | (84,287) | |
Accumulated other comprehensive income | 736 | 1,402 | |
Total stockholders' equity | 7,704 | 2,823 | |
Total liabilities and stockholders' equity | 184,640 | 180,204 | |
Class A Common Stock [Member] | |||
Stockholders' equity: | |||
Common stock | [1] | 30,988 | 30,988 |
Class B Common Stock [Member] | |||
Stockholders' equity: | |||
Common stock | [1] | $ 38,613 | $ 38,613 |
[1] | unlimited shares authorized |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 26, 2016 | Mar. 28, 2015 |
Common stock, shares outstanding | 17,960,881 | 17,960,881 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares issued | 10,242,911 | 10,242,911 |
Common stock, shares outstanding | 10,242,911 | 10,242,911 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares issued | 7,717,970 | 7,717,970 |
Common stock, shares outstanding | 7,717,970 | 7,717,970 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 285,826 | $ 301,637 | $ 281,165 |
Cost of sales | 176,439 | 183,832 | 166,498 |
Gross profit | 109,387 | 117,805 | 114,667 |
Selling, general and administrative expenses | 91,125 | 103,735 | 105,512 |
Restructuring charges | 754 | 2,604 | |
Depreciation and amortization | 5,229 | 5,932 | 5,426 |
Gain on sale of assets | (3,229) | ||
Impairment of long-lived assets | 238 | ||
Total operating expenses | 93,879 | 112,509 | 110,938 |
Operating income | 15,508 | 5,296 | 3,729 |
Interest and other financing costs | 10,020 | 11,285 | 9,512 |
Debt extinguishment charges | 2,643 | ||
Income (loss) before income taxes | 5,488 | (8,632) | (5,783) |
Income tax expense | 50 | 18 | |
Net income (loss) | $ 5,438 | $ (8,632) | $ (5,801) |
Weighted average common shares outstanding: | |||
Basic | 17,961 | 17,937 | 16,617 |
Diluted | 17,961 | 17,937 | 16,617 |
Net income (loss) per share: | |||
Basic | $ 0.30 | $ (0.48) | $ (0.35) |
Diluted | $ 0.30 | $ (0.48) | $ (0.35) |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 5,438 | $ (8,632) | $ (5,801) | |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | [1],[2] | (666) | (2,359) | (2,006) |
Total other comprehensive income (loss) | $ 4,772 | $ (10,991) | $ (7,807) | |
[1] | Item that may be reclassified to the Statement of Operations in future periods | |||
[2] | The change in cumulative translation adjustments is not due to reclassifications out of accumulated other comprehensive income (loss). |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Voting Common Stock Outstanding [Member] | Voting Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||
Beginning Balance at Mar. 30, 2013 | $ 16,351 | $ 64,489 | $ 15,949 | $ (69,854) | $ 5,767 | |||
Beginning Balance, Shares at Mar. 30, 2013 | 14,833,611 | |||||||
Net (loss) income | (5,801) | (5,801) | ||||||
Cumulative translation adjustment | [2] | (2,006) | [1] | (2,006) | ||||
Total comprehensive income | (7,807) | |||||||
Compensation expense resulting from stock options granted to Management | 143 | 143 | ||||||
Exercise of stock options | $ 74 | 125 | (51) | |||||
Exercise of stock options, Shares | 74,813 | 74,813 | ||||||
Issuance of Class A shares for stock rights offering, net of taxes of $0 | $ 4,861 | 4,861 | ||||||
Issuance of Class A shares for stock rights offering, net of taxes of $0, Shares | 2,941,085 | |||||||
Ending Balance at Mar. 29, 2014 | $ 13,622 | 69,475 | 16,041 | (75,655) | 3,761 | |||
Ending Balance, Shares at Mar. 29, 2014 | 17,849,509 | 17,849,509 | ||||||
Net (loss) income | $ (8,632) | (8,632) | ||||||
Cumulative translation adjustment | [2] | (2,359) | [1] | (2,359) | ||||
Total comprehensive income | (10,991) | |||||||
Compensation expense resulting from stock options granted to Management | 76 | 76 | ||||||
Exercise of stock options | $ 116 | 126 | (10) | |||||
Exercise of stock options, Shares | 111,372 | 111,372 | ||||||
Ending Balance at Mar. 28, 2015 | $ 2,823 | 69,601 | 16,107 | (84,287) | 1,402 | |||
Ending Balance, Shares at Mar. 28, 2015 | 17,960,881 | 17,960,881 | ||||||
Net (loss) income | $ 5,438 | 5,438 | ||||||
Cumulative translation adjustment | [2] | (666) | [1] | (666) | ||||
Total comprehensive income | 4,772 | |||||||
Compensation expense resulting from stock options granted to Management | 109 | 109 | ||||||
Ending Balance at Mar. 26, 2016 | $ 7,704 | $ 69,601 | $ 16,216 | $ (78,849) | $ 736 | |||
Ending Balance, Shares at Mar. 26, 2016 | 17,960,881 | 17,960,881 | ||||||
[1] | Item that may be reclassified to the Statement of Operations in future periods | |||||||
[2] | The change in cumulative translation adjustments is not due to reclassifications out of accumulated other comprehensive income (loss). |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Mar. 29, 2014USD ($) | |
Stock rights offering, net of taxes | $ 0 |
Voting Common Stock Outstanding [Member] | |
Stock rights offering, net of taxes | 0 |
Voting Common Stock [Member] | |
Stock rights offering, net of taxes | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Cash flows from (used in) operating activities: | |||
Net income (loss) | $ 5,438 | $ (8,632) | $ (5,801) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 5,275 | 5,991 | 5,523 |
Impairment of long-lived assets | 238 | ||
Amortization of debt costs | 973 | 724 | 555 |
Debt extinguishment charges | 2,643 | ||
Other operating activities, net | 31 | 342 | 316 |
Gain on sale of assets | (3,229) | ||
(Increase) decrease in: | |||
Accounts receivable and other receivables | (3,189) | (1,515) | (1,753) |
Inventories | (6,671) | (750) | (14,470) |
Prepaids and other current assets | 517 | (552) | (18) |
Increase (decrease) in: | |||
Accounts payable | 2,742 | 11,039 | (3,138) |
Accrued liabilities and other long-term liabilities | 2,817 | 1,072 | (331) |
Net cash provided by (used in) operating activities | 4,704 | 10,600 | (19,117) |
Cash flows (used in) from investing activities: | |||
Additions to property and equipment | (6,476) | (6,277) | (6,595) |
Proceeds from sale of assets (net of fees of $0.2 million) | 4,072 | ||
Other investing activities, net | (37) | (48) | (253) |
Net cash used in investing activities | (2,441) | (6,325) | (6,848) |
Cash flows (used in) provided by financing activities: | |||
Increase (decrease) in bank indebtedness | 1,043 | (4,821) | 9,819 |
Repayment of obligations under capital leases | (2,263) | (2,003) | (1,024) |
Proceeds from capital lease funding | 43 | 1,000 | |
Proceeds from private placement, net of costs | 4,861 | ||
Proceeds from stock option exercise | 116 | 74 | |
Payment of deferred financing fees and costs | (444) | (4,019) | (891) |
Repayment of long-term debt | (2,956) | (1,144) | (3,017) |
Increase in long-term debt | 2,500 | 6,828 | 14,828 |
Other financing activities | (25) | (14) | (21) |
Net cash (used in) provided by financing activities | (2,102) | (4,057) | 24,629 |
Effect of exchange rate on cash | (173) | (190) | (162) |
Net increase (decrease) in cash and cash equivalents | (12) | 28 | (1,498) |
Cash and cash equivalents, beginning of year | 2,356 | 2,328 | 3,826 |
Cash and cash equivalents, end of year | 2,344 | 2,356 | 2,328 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 8,508 | 9,100 | 8,525 |
Non-cash transactions: | |||
Property and equipment additions acquired through capital leases | 43 | 4,055 | |
Property and equipment additions included in accounts payable and accrued liabilities | $ 1,055 | $ 580 | 742 |
Conversion of debentures into Class A voting shares | $ 4,861 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Statement of Cash Flows [Abstract] | |||
Payments for fees | $ 0.2 | $ 0.2 | $ 0.2 |
Basis of presentation
Basis of presentation | 12 Months Ended |
Mar. 26, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | 1. Basis of presentation: These consolidated financial statements, which include the accounts of the Canadian parent company Birks Group and its wholly owned subsidiary, Mayor’s Jewelers, Inc. (“Mayors”), are reported in U.S. dollars and in accordance with accounting principles generally accepted in the U.S. These principles require management to make certain estimates and assumptions that affect amounts reported and disclosed in the financial statements and related notes. The most significant estimates and judgments include assessing the valuation of inventories, accounts receivable, deferred tax assets, the recoverability of long-lived assets and the substantial doubt assessment of the going concern assumption. Actual results could differ from these estimates. Periodically, the Company reviews all significant estimates and assumptions affecting the financial statements relative to current conditions and records the effect of any necessary adjustments. All significant intercompany accounts and transactions have been eliminated upon consolidation. Future operations These financial statements have been prepared on a going concern basis in accordance with generally accepted accounting principles in the U.S. The going concern basis of presentation assumes that the Company will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company’s ability to fund its operations and meet its cash flow requirements in order to fund its operations is dependent upon its ability to maintain profitable operations as well as specified excess availability levels under its senior secured revolving credit facility and its senior secured term loan, and adhering to certain financial covenants described in note 7. The Company reported net income of $5.4 million for fiscal 2016. In fiscal 2015 and 2014, the Company incurred net losses of $8.6 million and $5.8 million, respectively. Maintenance of sufficient availability of funding through an adequate amount of committed financing is necessary for the Company to fund its day-to-day operations. The Company’s ability to make scheduled payments of principal, or to pay the interest or additional interest, if any, or to fund planned capital expenditures and store operations will depend on its ability to maintain adequate levels of available borrowing and its future performance, which to a certain extent, is subject to general economic, financial, competitive, legislative and regulatory factors, as well as other events that are beyond the Company’s control. Approximately 30% of the Company’s store leases are renewable within two years. The Company’s capital expenditure requirements relating to renewing store leases is such that less than 15% of all store leases require capital expenditures in the next two years. The capital expenditures related to retail store locations in both Canada and the U.S. are estimated to be approximately $8.8 million over the next two years to remodel, relocate or open new stores. Of the $8.8 million, we estimate that $4.3 million will be spent in fiscal 2017 leaving the balance to fiscal 2018. The availability of financing will impact our ability to renew leases or enter into new ones, which can in turn, impact the number of retail locations we operate and the level of sales we generate in the future. The Company funds its operation primarily through committed financings under its senior secured credit facilities and term loans. The Company’s ability to fund its operations and meet its cash flow requirements is dependent upon its ability to maintain positive excess availability of at least $8 million under the senior secured revolving credit facility. As of March 26, 2016, the Company had approximately $63.2 million outstanding on the $110 million senior secured revolving credit facility. The Company’s excess borrowing capacity was $16.2 million as of March 26, 2016 and $12.9 million as of March 28, 2015. The Company had positive excess availability of at least $8 million throughout fiscal 2016. The senior secured revolving credit facility along with the senior secured term loan are used to finance working capital, finance capital expenditures, provide liquidity to fund our day-to-day operations and for other general corporate purposes. The term of the senior secured revolving credit facility expires on August 22, 2017, while the senior secured term loan matures August 22, 2018. Under the terms of the amended senior secured credit facilities, the Company is required to maintain minimum adjusted EBITDA levels (calculated on a twelve-month rolling basis as defined in the agreement) if the Company’s availability under its senior secured revolving credit facility is below $8.0 million for any five consecutive business days. Failure to meet the minimum adjusted EBITDA covenant in the event that availability falls below $8.0 million as described above is considered an event of default, that could result in the outstanding balances borrowed under the Company’s senior secured term loan and senior secured revolving credit facility becoming due immediately, and will result in cross defaults on the Company’s other borrowings. As part of the amendments to the senior secured credit facilities entered into in November 2015, the minimum adjusted EBITDA levels were reduced for the months of October 2015 through July 2017 to reflect the impact of the weaker Canadian dollar. As the Company is forecasting to have excess availability of at least $8 million throughout fiscal 2017, it does not expect that the minimum adjusted EBITDA financial covenant will have to be tested. In addition, our senior secured revolving credit facility administrative agent may impose, at any time, discretionary reserves, which would lower the level of borrowing availability under our senior secured revolving credit facility (customary for asset-based loans) at their reasonable discretion to: i) ensure that we maintain adequate liquidity for the operation of our business, ii) cover any deterioration in the amount or value of the collateral, and iii) reflect impediments to the lenders to realize upon the collateral. There is no limit to the amount of discretionary reserves that our senior secured revolving credit facility administrative agent may impose at its reasonable discretion. In November 2015, the terms of the senior secured credit facilities were amended to remove the requirement to finalize and complete a recapitalization transaction by January 2016, which included but was not limited to, the closing of permanent financing, equity infusion and/or restructuring acceptable to the lenders (the “Recapitalization Transaction”). Consequently, this removed the additional reserve of up to $2.5 million that may have been established by the senior secured lenders. The Company has also received three term loan financings from Investissement Québec in the amount of $6.6 million (CAD$8.6 million) that mature in 2017, 2018 and 2019. In November 2015, the Company amended the monthly capital requirements amounts of all term loans with Investissement Québec in order to reduce its short-term capital requirements. The impact of the amendment on the first twelve months following the effective date of the amendment translates to a reduction of CAD$2 million (approximately $1.5 million in U.S. dollars) of the monthly capital requirements. This amendment was agreed to by the senior secured lenders. The term loans with Investissement Québec also require the Company on an annual basis to have a working capital ratio of at least 1.15 and an adjusted long-term debt to adjusted net assets ratio below 2.5. At March 26, 2016, the Company was in compliance with the working capital financial covenant. On each of June 26, 2015 and March 7, 2016, the Company obtained a waiver from Investissement Québec with respect to the requirement to test the adjusted long-term debt to adjusted net assets ratio for fiscal 2016 and fiscal 2017, respectively. On August 4, 2015, the Company sold the assets of its corporate sales division to Rideau Recognition Solutions Inc. (“Rideau”) (see note 6) for gross proceeds of $4.3 million and executed a supply and licensing agreement for Birks products and Birks-branded products with minimum purchase requirements which will contribute to future cash inflows. The Company continues to be actively engaged in identifying alternative sources of financing that include raising additional funds through public or private equity, the disposal of assets, and debt financing, including funding from governmental sources which may not be possible as the success of raising additional funds is beyond the Company’s control. The Company’s majority shareholder is not bound to provide this financing. The incurrence of additional indebtedness would result in increased debt service obligations and could result in operating and financing covenants that could restrict the Company’s operations. Financing may be unavailable in amounts or on terms acceptable to the Company or at all, which may have a material adverse impact on its business, including its ability to continue as a going concern. The Company believes that it will be able to adequately fund its operations and meet its cash flow requirements for at least the next twelve months. This determination, however, could be impacted by future economic, financial and competitive factors, as well as other future events that are beyond the Company’s control. If any of these factors or events result in operating performance being significantly lower than is currently forecasted, or if the Company’s senior lenders impose additional restrictions on its ability to borrow on the Company’s collateral, or if the Company does not maintain positive excess availability under its senior secured revolving credit facilities which is an event of default and the lenders exercise their right to demand repayment of balances owed under these credit facilities, there could be substantial doubt about the Company’s ability to continue as a going concern, and its capacity to realize the carrying value of its assets and repay its existing and future obligations as they generally become due without obtaining additional financing which may not be available as explained above. These financial statements do not reflect adjustments that would be necessary if the going concern assumption was not appropriate. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
Significant accounting policies | 2. Significant accounting policies: (a) Revenue recognition: Sales are recognized at the point of sale when merchandise is picked up by the customer or delivered to a customer. Shipping and handling fees billed to customers are included in net sales. Revenues for gift certificate sales and store credits are recognized upon redemption. Prior to recognition as a sale, gift certificates are recorded as accounts payable on the balance sheet. Based on historical redemption rates, a portion of gift certificates and store credits, not subject to unclaimed property laws, are recorded as income. Gift certificates and store credits outstanding and subject to unclaimed property laws are maintained as accrued liabilities until remitted in accordance with local ordinances. Sales of consignment merchandise are recognized at such time as the merchandise is sold, and are recorded on a gross basis because the Company is the primary obligor of the transaction, has general latitude on setting the price, has discretion as to the suppliers, is involved in the selection of the product and has inventory loss risk. Sales are reported net of returns and sales taxes. The Company generally gives its customers the right to return merchandise purchased by them within 10 to 90 days, depending on the product sold and records a provision at the time of sale for the effect of the estimated returns. Revenues for repair services are recognized when the service is delivered to and accepted by the customer. Revenue related to the Company’s purchases of gold and other precious metals from our customers are recognized when the Company delivers the goods, and receives and accepts an offer from a refiner to purchase the gold and other precious metal. Licensing fees are recognized when the product is delivered to and accepted by the customer. (b) Cost of sales: Cost of sales includes direct inbound freight and duties, direct labor related to repair services, design and creative, the jewelry studio, inventory shrink, inventory thefts, and boxes (jewelry, watch and giftware). Indirect freight including inter-store transfers, purchasing and receiving costs, distribution costs and warehousing costs are included in selling, general and administrative expenses. Purchase discounts are recorded as a reduction of inventory cost and are recorded to cost of sales as the items are sold. Mark down dollars received from vendors are recorded as a reduction of inventory costs to the specific items to which they apply and are recognized in cost of sales once the items are sold. Other vendor allowances, primarily related to the achievement of certain milestones, are infrequent and insignificant and are recognized upon achievement of the specified milestone in cost of sales. Included in cost of sales is depreciation related to manufacturing machinery, equipment and facilities of $46,000, $59,000 and $97,000 for the fiscal years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. (c) Cash and cash equivalents: The Company utilizes a cash management system under which a book cash overdraft may exist in its primary disbursement account. These overdrafts, when applicable, represent uncleared checks in excess of cash balance in the bank account at the end of a reporting period and have been reclassified to accounts payable on the consolidated balance sheets. The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Amounts receivable from credit card issuers are included in cash and cash equivalents and are typically converted to cash within 2 to 4 days of the original sales transaction. These amounts totaled $2.3 million and $2.4 million at March 26, 2016 and March 28, 2015, respectively. (d) Accounts receivable: Accounts receivable arise primarily from customers’ use of the Mayors credit card and wholesale sales. Several installment sales plans are offered to the Mayors credit card holders which vary as to repayment terms and finance charges. Finance charges on Mayors’ consumer credit receivables, when applicable, accrue at rates ranging from 0% to 9.9% per annum for financing plans. The Company maintains allowances for doubtful accounts associated with the accounts receivable recorded on the balance sheet for estimated losses resulting from the inability of its customers to make required payments. The allowance is determined based on a combination of factors including, but not limited to, the length of time that the receivables are past due, the Company’s knowledge of the customer, economic and market conditions and historical write-off experiences. The Company classifies a receivable account as past due if a required payment amount has not been received within the allotted time frame (generally 30 days), after which internal collection efforts commence. Once all internal collection efforts have been exhausted and management has reviewed the account, the account is put on nonaccrual status and may be sent for external collection or legal action. Upon the suspension of the accrual of interest, interest income is recognized to the extent cash payments received exceed the balance of the principal amount owed on the account. After all collection efforts have been exhausted, including internal and external collection efforts, an account is written off. The Company guarantees a portion of its private label credit card sales to its credit card vendor. The Company maintains a liability associated with these outstanding amounts. Similar to the allowance for doubtful accounts, the liability related to these guaranteed sales amounts are based on a combination of factors including the length of time the receivables are past due to the Company’s credit card vendor, the Company’s knowledge of the customer, economic and market conditions and historical write-off experiences of similar credits. If the financial conditions of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. (e) Inventories: Retail inventories and inventories of raw materials are valued at the lower of average cost or market. Inventories of work in progress and Company manufactured finished goods are valued at the lower of average cost (which includes material, labor and overhead costs) or market. The Company records provisions for lower of cost or market, damaged goods, and slow-moving inventory. The cost of inbound freight and duties are included in the carrying value of the inventories. The allowance for inventory shrink is estimated for the period from the last physical inventory date to the end of the reporting period on a store by store basis and at our factories and distribution centers. The shrink rate from the most recent physical inventory, in combination with historical experience, is the basis for providing a shrink allowance. Inventory is written down for estimated slow moving inventory equal to the difference between the cost of inventory and the estimated market value based on assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. (f) Property and equipment: Property and equipment are recorded at cost. Maintenance and repair costs are charged to selling, general and administrative expenses as incurred, while expenditures for major renewals and improvements are capitalized. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets as follows: Asset Period Buildings Lesser of term of the lease or the economic life Leasehold improvements Lesser of term of the lease or the economic life Software and electronic equipment 1 - 6 years Molds 2 - 5 years Furniture and fixtures 5 - 8 years Equipment 3 - 8 years (g) Intangible assets: Trademarks and tradenames are amortized using the straight-line method over a period of 15 to 20 years. The Company had $1.8 million and $1.8 million of intangible assets at March 26, 2016 and March 28, 2015, respectively. The Company had $1.0 million and $0.9 million of accumulated amortization of intangibles at March 26, 2016 and March 28, 2015, respectively. (h) Deferred financing costs: The Company amortizes deferred financing costs incurred in connection with its financing agreements using the effective interest method over the term of the related financing. Such deferred costs are included in other assets in the accompanying consolidated balance sheets. (i) Warranty accrual: The Company generally provides warranties on its jewelry and watches for periods extending up to three years and has a battery replacement policy for its private label watches. The Company accrues a liability based on its historical repair costs for such warranties. (j) Income taxes: Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial statement reporting purposes and the bases for income tax purposes, and (b) operating losses and tax credit carryforwards. Deferred income tax assets are evaluated and, if realization is not considered to be more-likely-than-not, a valuation allowance is provided (see note 10(a)). (k) Foreign exchange: Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange in effect at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing at the respective transaction dates. Revenue and expenses denominated in foreign currencies are translated at average rates prevailing during the year. Foreign exchange losses of $0.3 million, $0.4 million and $0.2 million were recorded in cost of goods sold for the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively and $0.2 million, $0.5 million and $0.3 million of losses on foreign exchange were recorded in interest and other financial costs related to U.S. dollar denominated debt of the Company’s Canadian operations for the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. Birks Group’s Canadian operations’ functional currency is the Canadian dollar while the reporting currency of the Company is the U.S. dollar. The assets and liabilities denominated in Canadian dollars are translated for reporting purposes at exchange rates in effect at the balance sheet dates. Revenue and expense items are translated at average exchange rates prevailing during the periods. The resulting gains and losses are accumulated in other comprehensive income. (l) Impairment of long-lived assets: The Company periodically reviews the estimated useful lives of its depreciable assets and changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. However, the Company will review its long-lived assets for impairment once events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when the estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition is less than its carrying value. Measurement of an impairment loss for such long-lived assets would be based on the difference between the carrying value and the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the asset. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During fiscal 2015, the Company recorded impairment charges on long-lived assets of $0.2 million associated with a Canadian Birks retail shop-in-shop location due to the projected operating performance of the location and a software impairment associated with a decision to abandon a software project. No impairment charge was recorded in fiscal 2016 and 2014. (m) Advertising and marketing costs: Advertising and marketing costs are generally charged to expense as incurred and are included in selling, general and administrative expenses in the consolidated statements of operations. However, certain expenses such as those related to catalogs are expensed at the time such catalogs are shipped to recipients. The Company and its vendors participate in cooperative advertising programs in which the vendors reimburse the Company for a portion of certain specific advertising costs which are netted against advertising expense in selling, general and administrative expenses, and amounted to $2.7 million, $2.9 million and $2.6 million for each of the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. Advertising and marketing expense, net of vendor cooperative advertising allowances, amounted to $9.0 million, $9.5 million and $11.0 million in the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. (n) Restructuring charges: Restructuring charges consist of exit costs and other costs associated with the reorganization of the Company’s operations, including the consolidation of most of the Company’s administrative workforce from its regional office in Tamarac, Florida to its Montreal corporate head office. Restructuring charges include severance and stay bonuses for employees being terminated, sublease costs and related losses recognized related to the abandonment of a portion of the Company’s Tamarac facilities and other costs related to the transition of administrative positions to Montreal including employee recruitment costs, temporary duplication of salaries related to the transition and travel and relocation costs. Costs associated with restructuring activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company’s best estimate. (o) Pre-opening expenses: Pre-opening expenses related to the opening of new and relocated stores are expensed in the period incurred. (p) Operating leases: All material lessor incentive amounts on operating leases are deferred and amortized as a reduction of rent expense over the term of the lease. Rent expense is recorded on a straight-line basis, which takes into effect any rent escalations, rent holidays and fixturing periods. Lease terms are from the inception of the fixturing period until the end of the initial lease term and generally exclude renewal periods. However, renewal periods would be included in instances in which the exercise of the renewal period option would be reasonably assured and failure to exercise such option would result in an economic penalty. Contingent rent payments vary by lease, are based on a percentage of revenue above a predetermined sales level and are expensed when it becomes probable the sales levels will be achieved. This level is different for each location and includes and excludes various types of sales. (q) Earnings per common share: Basic earnings per share (“EPS”) is computed as net earnings divided by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the dilutive effect of the assumed exercise of stock options, warrants and equity settled stock appreciation rights. The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 26, 2016, March 28, 2015 and March 29, 2014: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands, except per share data) Basic income (loss) per common share computation: Numerator: Net income (loss) $ 5,438 $ (8,632 ) $ (5,801 ) Denominator: Weighted-average common shares outstanding 17,961 17,937 16,617 Income (loss) per common share $ 0.30 $ (0.48 ) $ (0.35 ) Diluted income (loss) per common share computation: Numerator: Net income (loss) $ 5,438 $ (8,632 ) $ (5,801 ) Denominator: Weighted-average common shares outstanding 17,961 17,937 16,617 Dilutive effect of stock options, warrants and stock appreciation rights (SARs) — — — Weighted-average common shares outstanding – diluted 17,961 17,937 16,617 Diluted income (loss) per common share $ 0.30 $ (0.48 ) $ (0.35 ) For the year ended March 26, 2016, the effect from the assumed exercise of 666,789 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 28, 2015, the effect from the assumed exercise of 442,088 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 29, 2014, the effect from the assumed exercise of 668,421 Class A voting shares underlying outstanding stock options, 4,347 stock appreciation rights and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. (r) Commodity and currency risk: The Company has exposure to market risk related to gold, silver, platinum and diamond purchases and foreign exchange risk. The Company may periodically enter into gold futures contracts to economically hedge a portion of these risks. During the years ended and as of March 26, 2016 and March 28, 2015, there were no such contracts outstanding. (s) Recent Accounting Pronouncements adopted during the year: In May 2014, the FASB issued Accounting Standards Update (“ASU”) ASU 2014-08, Presentation of Financial Statements Property, Plant and Equipment Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (t) Recent Accounting Pronouncement not yet adopted: On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-05 – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (an update to Subtopic 350-40, Intangibles – Goodwill and Other – Internal-Use Software ) In July 2015, the FASB issued ASU No. 2015-11 – Inventory (Topic 330): Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” |
Accounts receivable
Accounts receivable | 12 Months Ended |
Mar. 26, 2016 | |
Receivables [Abstract] | |
Accounts receivable | 3. Accounts receivable: Accounts receivable, net of allowance for doubtful accounts, at March 26, 2016 and March 28, 2015 consist of the following: As of March 26, 2016 March 28, 2015 (In thousands) Customer trade receivables $ 8,041 $ 5,384 Other receivables 2,252 2,312 $ 10,293 $ 7,696 Included in customer trade receivables as of March 26, 2016 and March 28, 2015, was $0.3 million and $0.3 million, respectively, of net trade receivables on nonaccrual status. Continuity of the allowance for doubtful accounts is as follows (in thousands): Balance March 30, 2013 $ 2,109 Reduction in provision recorded (7 ) Net write-offs (296 ) Balance March 29, 2014 1,806 Additional provision recorded 613 Net write-offs (160 ) Balance March 28, 2015 2,259 Additional provision recorded 190 Net write-offs (294 ) Balance March 26, 2016 $ 2,155 Certain sales plans relating to customers’ use of Mayors credit cards provide for revolving lines of credit and/or installment plans under which the payment terms exceed one year. These receivables, amounting to approximately $5.0 million and $4.1 million at March 26, 2016 and March 28, 2015, respectively, are included in customer trade receivables. |
Inventories
Inventories | 12 Months Ended |
Mar. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories: Inventories, net of obsolescence reserve, are summarized as follows: As of March 26, 2016 March 28, 2015 (In thousands) Raw materials $ 4,301 $ 5,587 Work in progress 95 84 Retail inventories and manufactured finished goods 133,443 130,068 $ 137,839 $ 135,739 Continuity of the obsolescence reserve for inventory is as follows (in thousands): Balance March 30, 2013 $ 3,557 Additional charges 1,214 Deductions (2,257 ) Balance March 29, 2014 2,514 Additional charges 1,545 Deductions (1,313 ) Balance March 28, 2015 2,746 Additional charges 626 Deductions (1,228 ) Balance March 26, 2016 $ 2,144 |
Property and equipment
Property and equipment | 12 Months Ended |
Mar. 26, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | 5. Property and equipment: The components of property and equipment are as follows: As of March 26, 2016 March 28, 2015 (In thousands) Land $ 4,909 $ 5,178 Buildings 7,274 7,664 Leasehold improvements 36,550 41,153 Equipment 1,933 2,083 Molds 838 934 Furniture and fixtures 9,858 9,914 Software and electronic equipment 19,155 19,911 80,517 86,837 Accumulated depreciation (51,098 ) (58,293 ) $ 29,419 $ 28,544 The Company wrote off $10.4 million of gross fixed assets that were fully amortized during the year ended March 26, 2016, mostly related to leasehold improvements. Property and equipment, having a cost of $12.1 million and a net book value of $8.4 million at March 26, 2016, and a cost of $18.8 million and a net book value of $10.6 million at March 28, 2015, are under capital leasing arrangements. |
Sale of assets
Sale of assets | 12 Months Ended |
Mar. 26, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of assets | 6. Sale of assets On August 4, 2015, the Company sold the assets of its corporate sales division to Rideau for $4.3 million. The disposal is consistent with the Company’s long-term strategy to concentrate on its retail operations and develop its Birks product brand through its current retail network, as well as internationally through other channels, and to concentrate the Company’s resources and efforts on its core activities. On August 4, 2015, the carrying amount of the major classes of assets that were sold was comprised primarily of inventory of $0.8 million, resulting in a gain on disposal of assets in the amount of approximately $3.2 million. Furthermore, as part of the agreement, the Company will supply Rideau, with Birks-branded time pieces and jewelry and will receive ongoing royalty payments from Rideau, related to future sales of all Birks-branded products. Rideau has agreed to purchase a minimum aggregate amount of $4.5 million for the first three years, and $2.0 million per year for each contract year thereafter for a period of 7 years. |
Bank indebtedness
Bank indebtedness | 12 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Bank indebtedness | 7. Bank indebtedness: As of March 26, 2016 and March 28, 2015, bank indebtedness consisted solely of the Company’s senior secured revolving credit facility which had an outstanding balance of $63.2 million and $64.3 million, respectively. The senior secured revolving credit facility is collateralized by substantially all of the Company’s assets. The Company’s ability to fund its operations and meet its cash flow requirements is dependent upon its ability to maintain positive excess availability under its senior credit facilities. Our excess borrowing capacity, which was above $8.0 million throughout fiscal 2016, was $16.2 million as of March 26, 2016 and $12.9 million as of March 28, 2015. In July 2015, the Company executed an amendment to its $33 million senior secured term loan to increase the amount of the secured term loan to $35.5 million. The interest rate on the additional $2.5 million tranche is at an annual rate of LIBOR + 9.75%, and the tranche was repaid on time in two equal payments on December 2015 and May 2016. The senior secured term loan is subordinated in lien priority to the senior secured revolving credit facility. These two credit facilities are used to finance working capital and capital expenditures, provide liquidity to fund the Company’s day-to-day operations and for other general corporate purposes. Under the terms of the amended senior secured facilities, the Company is required to maintain minimum adjusted EBITDA levels (calculated on a twelve month rolling period as defined in the agreements) if and only if, for any five consecutive business days, its availability under the senior secured revolving credit facility falls below $8.0 million. Failure to meet the minimum adjusted EBITDA levels if the Company’s availability is below $8.0 million for any five consecutive business days, is considered an event of default which could result in the outstanding balances borrowed under the senior secured term loan and senior secured revolving credit facility becoming due immediately. In November 2015, the Company executed an amendment to the senior secured credit facilities, agreeing with its lenders to remove the requirement to close a Recapitalization Transaction. Consequently, this removes the additional reserve of up to $2.5 million that could have been imposed by the senior secured lenders if the Company had not met this condition. As part of the amendment, the minimum adjusted EBITDA levels (calculated on a twelve-month rolling basis as defined in the senior secured credit facilities) were also amended. The minimum adjusted EBITDA levels were reduced for the months of October 2015 through July 2017 to reflect the impact of the weaker Canadian dollar and the disposal of the corporate sales division. Under the terms of the amended senior secured facilities, the senior secured revolving credit facility administrative agent may, at any time, impose various reserves which would lower the level of borrowing availability under the Company’s senior secured revolving credit facility (customary for asset-based loans), at their reasonable discretion, to: i) ensure that the Company maintains adequate liquidity for the operation of its business, ii) cover any deterioration in the amount or value of the collateral, and iii) reflect impediments to the senior secured lenders to realize upon the collateral. There is no limit to the amount of discretionary reserves that the Company’s senior secured revolving credit facility administrative agent may impose at its reasonable discretion. No discretionary reserves were imposed during fiscal 2015 and fiscal 2016 by the Company’s senior secured revolving credit facility administrative agent. While the Company’s senior secured revolving credit facility lenders or their administrative agent have not historically imposed such a restriction, it is uncertain whether conditions could change and cause such a reserve to be imposed in the future. In addition, the value of the Company’s inventory and accounts receivables is periodically assessed by its senior secured lenders and based upon these reviews the Company’s borrowing capacity could be significantly increased or decreased. Another factor impacting the Company’s excess availability includes, among other things, changes in the U.S. and Canadian dollar exchange rate, which could increase or decrease the Company’s borrowing availability. As of March 26, 2016, every 100 basis point strengthening or weakening of the Canadian versus the U.S. dollar would cause an approximately $13,000 increase or decrease, respectively, in the amount of excess availability. The Company met its excess availability requirement as of March 26, 2016 and as of the date of the filing of this document. Furthermore, a $12.5 million and a $5.0 million seasonal availability block is imposed by the senior secured revolving credit facility administrative agent and the senior secured term loan administrative agent each year from December 20th to January 20th and from January 21st to February 10th, respectively. Both the Company’s senior secured revolving credit facility and the senior secured term loan are subject to cross default provisions with all other loans pursuant to which if the Company is in default of any other loan, the Company will immediately be in default of both the senior secured revolving credit facility and the senior secured term loan. The senior secured revolving credit facility also contains limitations on the Company’s ability to pay dividends, more specifically, among other limitations, the Company can pay dividends only at certain excess borrowing capacity thresholds and the aggregate dividend payment for the twelve-month period ended as of any fiscal quarter cannot exceed 33% of the consolidated net income for such twelve-month period. Additionally, the Company is required to maintain a fixed charge coverage ratio of at least 1.30 to 1.00 and a minimum excess availability of $30 million in order to qualify for payment of dividends. Besides these financial covenants related to paying dividends, the terms of this facility provide that no financial covenants are required to be met other than already described. In November 2015, the Company amended the monthly capital requirements amounts of all term loans with Investissement Québec in order to reduce its short-term capital requirements. The impact of the amendment on the first twelve months following the effective date of the amendment translates to a reduction of CAD$2 million (approximately $1.5 million in U.S. dollars) of the monthly capital requirements. This amendment was agreed to by the senior secured lenders. The term loans with Investissement Québec require the Company on an annual basis to have a working capital ratio of at least 1.15 and an adjusted long-term debt to adjusted net assets ratio below 2.5. On each of June 26, 2015 and March 7, 2016, the Company obtained a waiver from Investissement Québec with respect to the requirement to meet the adjusted long-term debt to adjusted net assets ratio for fiscal 2016 and fiscal 2017, respectively. The Company was in compliance with the working capital ratio as of March 26, 2016. The term of the senior secured revolving credit facility expires on August 22, 2017 while the senior secured term loan matures on August 22, 2018. The information concerning the Company’s senior secured credit facility is as follows: Fiscal Year Ended March 26, 2016 March 28, 2015 (In thousands) Maximum borrowing outstanding during the year $ 78,137 $ 86,450 Average outstanding balance during the year $ 68,205 $ 73,207 Weighted average interest rate for the year 3.2% 3.3% Effective interest rate at year-end 3.3% 3.2% As security for the bank indebtedness, the Company has provided some of its lenders the following: (i) general assignment of all accounts receivable, other receivables and trademarks; (ii) general security agreements on all of the Company’s assets; (iii) insurance on physical assets in a minimum amount equivalent to the indebtedness, assigned to the lenders; (iv) a mortgage on moveable property (general) under the Civil Code (Québec) of $188,395,000 (CAD$250,000,000); (v) lien on machinery, equipment and molds and dies; and (vi) a pledge of trademarks and stock of the Company’s subsidiaries. |
Long-term debt
Long-term debt | 12 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | 8. Long-term debt: (a) Long-term debt consists of the following: As of March 26, 2016 March 28, 2015 (In thousands) Senior secured term loans that are subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bears interest at an annual rate of LIBOR plus 9.75% on $28 million of debt and LIBOR plus 7.25% on $5 million of debt. The term of the loan expires in August 2018 $ 33,000 $ 33,000 Senior secured term loan that is subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bore interest at an annual rate of LIBOR plus 9.75%. The loan was repaid in May 2016 1,250 — Obligation under capital lease on land and building, pursuant to a sale-leaseback transaction. The term loan is being amortized using an implicit annual interest rate of 10.74% over the term of the lease of 20 years with a balloon payment related to the land component and is repayable in monthly installments of approximately $139,063 (CAD$184,537). The balance at March 26, 2016 and March 28, 2015 was CAD$12.1 million and CAD$12.8 million, respectively (f) 9,141 10,211 Term loan from Investissement Quebec, bearing interest at an annual rate of prime plus 7.0%, repayable beginning in October 2014 in 60 equal monthly principal payments of $62,798 (CAD$83,333), secured by the assets of the Company. The balance at March 26, 2016 and March 28, 2015 was CAD$3.7 million and CAD$4.6 million, respectively (b) 2,826 3,643 Term loan from Investissement Québec, bearing interest at an annual rate of prime plus 5.5%, repayable beginning in April 2012 in 48 equal monthly capital repayments of $156,995 (CAD$208,333), secured by the assets of the Company. The balance at March 26, 2016 and March 28, 2015 was CAD$3.1 million and CAD$4.4 million, respectively (b) 2,355 3,478 Term loan from Investissement Québec, bearing interest at an annual rate of Canadian prime plus 10%, repayable beginning in August 2015 in 48 equal monthly principal payment of $31,399 (CAD$41,667), secured by the assets of the Company. The balance at March 26, 2016 and March 28, 2015 was CAD$1.8 million and 2.0 million respectively (b) 1,383 1,590 Obligations under capital leases, at annual interest rates between 5.8% and 14.9%, secured by leasehold improvements, furniture, and equipment, maturing at various dates to March 2021 1,719 3,362 Cash advance provided by the Company’s controlling shareholder, Montrovest, bearing interest at an annual rate of 11%, net of withholding taxes (note 16(c)) 1,500 1,500 53,174 56,784 Current portion of long-term debt 5,670 4,745 $ 47,504 $ 52,039 (b) The Company must comply with certain financial covenants associated with its terms loans with Investissement Québec. On each of June 26, 2015 and March 7, 2016, the Company obtained a waiver from Investissement Québec with respect to the requirement to meet the adjusted long-term debt to adjusted net assets ratio for fiscal 2016 and fiscal 2017, respectively. The Company was in compliance with the other financial covenant as at March 26, 2016. (c) Future minimum lease payments for capital leases required in the following five years and thereafter are as follows (in thousands): Year ending March: 2017 $ 2,967 2018 2,180 2019 1,698 2020 1,680 2021 6,171 Thereafter — 14,696 Less imputed interest 3,836 $ 10,860 (d) Principal payments on long-term debt required in the following five years and thereafter, including obligations under capital leases, are as follows (in thousands): Year ending March: 2017 $ 5,670 2018 3,580 2019 35,049 2020 1,637 2021 5,738 Thereafter 1,500 $ 53,174 (e) As of March 26, 2016 and March 28, 2015, the Company had $1.0 million and $1.0 million, respectively, of outstanding letters of credit which were provided to certain lenders. (f) In December 2000, the Company entered into a capital lease agreement for the Company’s Montreal head office and store pursuant to which the Company leases the building, including the Montreal flagship store, for a term of 20 years ending December 11, 2020. The net annual rental rate was CAD$2.0 million (approximately $1.5 million U.S. dollars) for the period that ended on December 11, 2015, and increases on a compounded basis by 10% on each third annual anniversary date thereafter (except for the last two years when no increase will take place). The current net annual rental rate is CAD$2.2 million (approximately $ 1.7 million U.S. dollars). The lease is an absolute triple net lease to the landlord, and the Company is responsible for any and all additional expenses, including, without limitation, taxes and structural expenses. Subject to specific term and conditions, the Company has four options to renew and extend the term of the lease for four further terms of five years each, except for the last option which is five years less eleven days, terminating on November 30, 2040. Subject to specific terms and conditions, the Company also has two options to purchase the premises, which may be exercised no later than six months prior to the end of the fifteenth year of the term of the lease and the end of the twentieth year of the term of the lease, respectively. The Company did not exercise its first option to purchase the premise which expired on June 11, 2015. |
Benefit plans and stock-based c
Benefit plans and stock-based compensation | 12 Months Ended |
Mar. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Benefit plans and stock-based compensation | 9. Benefit plans and stock-based compensation: (a) Stock option plans and arrangements: (i) The Company can issue stock options and SARs to executive management, key employees and directors under a stock-based compensation plan. The Company has a Long-Term Incentive Plan under which awards may be made in order to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to employees and to promote the success of the Company. Any employee or consultant selected by the administrator is eligible for any type of award provided for under the Long-Term Incentive Plan, except that incentive stock options may not be granted to consultants. The Long-Term Incentive Plan provides for the grant of units and performance units or share awards. The Long-Term Incentive Plan authorizes the issuance of 900,000 Class A voting shares, which consist of authorized but unissued Class A voting shares. The Company is restricted from issuing Class A voting shares or equity based awards under this program without the approval of the shareholders of the Company if such issuance, when combined with the Class A voting shares issuable under this plan or any of the Company’s other equity incentive award plans exceeds 1,304,025 Class A voting shares. This plan expired in February 2016 and no further awards will be granted under this plan. However, the Long-Term Incentive Plan will remain in effect until the outstanding awards issued under the plan terminate or expire by their terms. As of March 26, 2016, there were 154,990 cash-based stock appreciation rights that were granted under the Long-Term Incentive Plan. The stock appreciation rights outstanding under the Long-Term Incentive Plan have a weighted average exercise price of $1.45. As of March 26, 2016, there were stock options to purchase 660,000 Class A voting shares outstanding under the Long-Term Incentive Plan. During fiscal 2016 and 2015, stock options to purchase 235,000 shares and 50,000 shares, respectively, of the Company’s Class A voting shares were issued with a three year vesting period, with an average exercise price of $0.78 and $1.94, respectively, and an expiration date of 10 years after the grant date. The weighted-average grant-date fair value of the options granted during fiscal 2016 and 2015 was $0.69 and $1.71, respectively. The fair value of the newly issued options in fiscal 2016 and 2015 was calculated as of the date of their grant, using the Black-Scholes option pricing model with the following weighted-average assumptions: Dividend yield – 0%; Expected volatility – 95.3% for options issued in fiscal 2016 and 94.8% for options issued in fiscal 2015; Risk-free interest rate –2.3% for options issued in fiscal 2016 and 2.04% for options issued in fiscal 2015; and expected term in years – 10 years. The outstanding options as of March 26, 2016 had no intrinsic value. The unrecognized compensation related to the non-vested portion of stock options granted as of March 26, 2016 was $144,000. Total compensation cost for options recognized in expenses was $109,000, $76,000 and $143,000 during fiscal 2016, 2015 and 2014, respectively. The Company has outstanding employee stock options issued under the Birks Employee Stock Option Plan (the “Birks ESOP”). Effective November 15, 2005, no awards are permitted to be granted under the Birks ESOP. However, the Birks ESOP will remain in effect until the outstanding awards issued under the plan terminate or expire by their terms. In March 2010, the Company offered employees who held options under this plan the right to amend their current options. The amended options terms would be consistent with the original grant except that the new options would have a lower exercise price, be exercisable for a lesser number of the Company’s Class A voting shares, have a new ten-year term and be subject to different terms in the event of a change in control or if the Company had a going-private transaction. The amended options have an exercise price of $1.05 per share. As of March 26, 2016, March 28, 2015 and March 29, 2014, there were 6,162, 6,162 and 6,454 Class A voting shares underlying options granted under the Birks ESOP, respectively. No compensation expense was required to be recorded related to the amended option transaction and no compensation expense was required to be recorded for the outstanding option under this plan for the years ended March 26, 2016, March 28, 2015 and March 29, 2014. The following is a summary of the activity of Birks’ stock option plans and arrangements. Options Weighted average Outstanding March 30, 2013 624,618 $ 1.18 Granted 165,000 1.16 Exercised (74,813 ) 1.00 Forfeited (50,220 ) 1.07 Outstanding March 29, 2014 664,585 1.21 Granted 50,000 1.94 Exercised (111,372 ) 1.04 Expired (15,000 ) 7.73 Forfeited (147,051 ) 1.10 Outstanding March 28, 2015 441,162 1.15 Granted 235,000 0.78 Forfeited (10,000 ) 1.10 Outstanding March 26, 2016 666,162 $ 1.02 A summary of the status of Birks’ stock options at March 26, 2016 is presented below: Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted $ 0.78 235,000 9.5 0.78 — — $ 0.84 100,000 7.1 $ 0.84 66,666 $ 0.84 $ 0.89 55,000 6.6 0.89 55,000 0.89 $ 1.04-1.05 156,162 5.7 1.04 156,162 1.04 $ 1.25-1.66 70,000 6.2 1.48 56,666 1.44 $ 1.94 50,000 8.8 1.94 16,666 1.94 666,162 7.6 $ 1.02 351,160 $ 1.09 (ii) Under plans approved by the former Board of Directors of Mayors, the Company has outstanding stock options issued to employees and members of the Company’s Board of Directors. No further awards will be granted under these plans. As of March 26, 2016, there are 627 options outstanding with a weighted average remaining estimated life of 4 years. No compensation expense was required to be recorded related to the options outstanding under this program for the years ended March 26, 2016, March 28, 2015 and March 31, 2014, respectively. The following is a summary of the activity of Mayors stock option plans: Options Weighted average Outstanding March 30, 2013 9,081 $ 7.18 Expired (5,245 ) 8.63 Outstanding March 29, 2014 3,836 5.19 Expired (2,910 ) 6.51 Outstanding March 28, 2015 926 1.05 Expired (299 ) 1.05 Outstanding March 26, 2016 627 $ 1.05 A summary of the status of the option plans at March 26, 2016 is presented below: Options outstanding and exercisable Exercise price Number Weighted average Weighted average $ 1.05 627 4.1 $ 1.05 (iii) The Company issues new shares to satisfy share-based awards and exercise of stock options. During fiscal 2016, 2015 and 2014, respectively, no cash was used to settle equity instruments granted under share-based payment arrangements. (b) As of March 26, 2016, the Company had outstanding warrants exercisable into 382,693 shares of the Company’s Class A voting shares. These warrants have a weighted average exercise price of $3.42 per share and expire on August 20, 2022. As of November 1, 2005, these awards were fully vested and no additional compensation expense will be recognized. (c) Employee stock purchase plan: The Company has an Employee Stock Purchase Plan (“ESPP”) that permits eligible employees, which does not include executives of the Company, to purchase the Company’s Class A voting stock at 85% of the Class A voting shares fair market value through regular payroll deductions. A total of 100,000 shares of the Company’s Class A voting shares are reserved for issuance under the ESPP. As of March 26, 2016, 99,995 Class A voting shares were outstanding under the ESPP and no additional shares will be issued under this plan. No shares were issued under the ESPP in fiscal 2016, 2015 and 2014. (d) Profit sharing plan: Mayors has a 401(k) Profit Sharing Plan & Trust (the “Plan”), which permits eligible employees to make contributions to the Plan on a pretax salary reduction basis in accordance with the provisions of Section 401(k) of the Internal Revenue Code. Mayors historically made cash contributions of 25% of the employee’s pretax contribution, up to 4% of Mayors employee’s compensation, in any calendar year. Effective January 1, 2009, the Company exercised its right to cancel all future matching contributions to the Plan and as such, no additional matching cash payments were made to the Plan during fiscal 2016, 2015 and 2014. (e) CEO and Senior Executive Long-Term Cash Incentive Plans: During the year ended March 30, 2013, the Board of Directors approved the long-term cash incentive plans (“LTCIPs”) for the Chief Executive Officer and certain executive officers. The intention of the LTCIPs was to reward the Chief Executive Officer and other members of senior management based on the performance of the Company over three-year cycles, the first of which began with the fiscal 2013 through fiscal 2015 period. The approval of a new three-year cycle was at the discretion of the Board of Directors on recommendation of the compensation committee. The payouts under the LTCIPs was to be based on the earnings before taxes (“EBT”) performance of the Company with the payout level earned during the three-year period either increasing or decreasing based on the Company’s EBT performance levels versus thresholds established in each of the three years of the three-year cycle and afterwards, if the LTCIPs were continued. The Company was to pay out a third of the LTCIPs value earned at the end of the first three year cycle and a third of the LTCIPs value for every year thereafter, subject to the Chief Executive Officer and participating executives continued employment and subject to the payment not causing any default on the Company’s credit facilities. The LTCIPs payouts will continue to rise or fall based on the Company’s performance each year. The total LTCIPs pool was only created to compensate if EBT was above a certain growth rate and the payout was capped so that the total three-year costs of the programs combined did not exceed 10% of the Company’s total earnings before taxes for the three-year period. Participation in the first three-year cycle was limited to the Company’s Chief Executive Officer and its two Senior Executives. The target incentive compensation level for the fiscal 2013 to 2015 LTCIPs cycle was $2,067,000 with a total payout capped at 200 percent above this targeted incentive compensation level irrespective of the earnings before taxes generated above these levels by the Company. The Company did not meet the EBT threshold established by the plan and accordingly, no liability or expense related to this plan was recorded and no new three-year cycles have been approved by the Board of Directors related to this plan. A new long-term cash incentive plan was approved by the Company’s Board of Directors to replace this plan in April 2015 as described below. (f) CEO Long-term Cash Incentive Plan: In April 2015, the Company’s Board of Directors approved a long-term cash incentive plan for the Chief Executive Officer (“CEO LTCIP”). The intention of the CEO LTCIP is to reward the Chief Executive Officer based on the Company’s performance over three-year cycles, the first of which begins with the fiscal 2016 through fiscal 2018 period. The approval of this three-year cycle is at the discretion of the Board of Directors on recommendation of the Compensation Committee. The CEO LTCIP is structured to fund a pool of dollars based on the successful achievement of earnings before tax (“EBT”) and the level of achievement of three key metrics that can modify the amount achieved based on EBT over three one-year periods. The amount of money funded each year, if earned, is added together at the end of the three-year cycle (with each year comprising one third of the total payout opportunity). Fifty percent (50%) of the final value of the pool following completion of the three year cycle is payable at the end of the three year cycle (early fiscal year 2019). with the remaining 50% payable one year thereafter (early fiscal 2020) subject to the Chief Executive Officer remaining employed at the time of payout and the payout not causing any default under our senior secured credit facilities. As of March 26, 2016, no amounts were earned under the CEO LTCIP. |
Income taxes
Income taxes | 12 Months Ended |
Mar. 26, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10. Income taxes: (a) The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of March 26, 2016, the Company had no accrued interest or penalties related to uncertain tax positions due to available tax loss carry forwards. The tax years 2011 through 2016 remain open to examination by the major taxing jurisdictions to which the Company is subject. The Company evaluates its deferred tax assets to determine if any adjustments to its valuation allowances are required. As part of this analysis, the Company could not reach the required conclusion that it would be able to more likely than not realize the value of both its U.S. and Canadian net deferred tax assets in the future. As a result, the Company has a non-cash valuation allowance of $57.3 million against the full value of the Company’s net deferred tax assets. The significant items comprising the Company’s net deferred tax assets at March 26, 2016 and March 28, 2015 are as follows: Fiscal Year Ended March 26, 2016 March 28, 2015 (In thousands) Deferred tax assets: Loss and tax credit carry forwards $ 39,710 $ 42,619 Difference between book and tax basis of property and equipment 2,731 2,513 Interest expense limitations carry forward 10,697 9,069 Inventory allowances 417 529 Other reserves not currently deductible 807 850 Capital lease obligation 2,431 2,696 Expenses not currently deductible 667 378 Other (175 ) 144 Net deferred tax asset before valuation allowance 57,285 58,798 Valuation allowance (57,285 ) (58,798 ) Net deferred tax asset $ — $ — The following table reconciles the unrecognized tax benefits at March 26, 2016 and March 28, 2015: Fiscal Year Ended March 26, 2016 March 28, 2015 (In thousands) Unrecognized tax benefits at the beginning of the year $ — $ — Gross increase – tax position in current period — 89 Applied against certain element of deferred tax assets — (89 ) Unrecognized tax benefits at the end of the year $ — $ — All unrecognized tax benefits would affect the effective tax rate if recognized. The Company’s income tax expense (benefit) consists of the following components: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Income tax expense (benefit): Current $ 50 $ 77 $ 183 Deferred 1,591 (2,636 ) (1,525 ) Valuation allowance (1,591 ) 2,559 1,360 Income tax expense $ 50 — $ 18 The Company’s current tax payable at March 26, 2016 was $35,000, nil for March 28, 2015, and $18,000 for March 29, 2014. The Company’s provision for income taxes varies from the amount computed by applying the statutory income tax rates for the reasons summarized below: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 Canadian statutory rate 26.6 % 26.4 % 26.4 % Rate differential for U.S. operations 6.5 % 5.1 % 2.0 % Adjustment to valuation allowance 3.2 % (30.7 )% (26.8 )% Utilization of unrecognized losses and other tax attributes (32.2 )% 0.0 % 0.0 % Permanent differences and other (3.2 )% (0.8 )% (2.1 )% Total 0.9 % (0.0 )% (0.5 )% (b) At March 26, 2016, the Company had federal non-capital losses of CAD$21.2 million ($16.0 million in U.S. dollars) available to reduce future Canadian federal taxable income and investment tax credits (“ITC’s”) in Canada of CAD$260,000 ($196,000 in U.S. dollars) available to reduce future Canadian federal income taxes payable which will expire between 2022 and 2035. (c) As of March 26, 2016, Mayors and another of the Company’s US subsidiary have federal and state net operating loss carry forwards in the U.S. of approximately $100.6 million and $91.1 million, respectively. Due to Section 382 limitations from the change in ownership for the year ended March 29, 2003, the utilization of approximately $35.3 million of the pre-acquisition net operating loss carry forwards is limited to approximately $953,000 on an annual basis through 2022. The federal net operating loss carry forwards expire beginning in fiscal 2020 through fiscal 2034 and the state net operating loss carry forwards expire beginning in fiscal 2018 through fiscal 2034. Mayors also has an alternative minimum tax credit carry forward of approximately $1.2 million to offset future federal income taxes. |
Capital stock
Capital stock | 12 Months Ended |
Mar. 26, 2016 | |
Equity [Abstract] | |
Capital stock | 11. Capital stock: Authorized capital stock of the Company consists of an unlimited number of no par value preferred shares and two classes of common stock outstanding: Class A and Class B. Class A voting shares receive one vote per share. The Class B multiple voting shares have substantially the same rights as the Class A voting shares except that each share of Class B multiple voting shares receives 10 votes per share. The issued and outstanding shares are as follows: Class A common stock Class B common stock Total common stock Number of Shares Amount Number of Shares Amount Number of Shares Amount Balance as of March 29, 2014 10,131,539 $ 30,862 7,717,970 $ 38,613 17,849,509 $ 69,475 Exercise of stock options 111,372 126 — — 111,372 126 Balance as of March 28, 2015 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 Exercise of stock options — — — — — — Balance as of March 26, 2016 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Mar. 26, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 12. Restructuring Charges: In July 2014, the Company provided to its senior secured lenders and announced an operational restructuring plan to reduce corporate overhead costs, improve profitability and drive efficiency within the organization. The restructuring plan included consolidating most of its corporate administrative workforce from its regional office in Tamarac, Florida to its Montreal corporate head office as well as the outsourcing of a portion of the Company’s jewelry manufacturing and other corporate office staff reductions. The Company incurred restructuring charges of approximately $0.8 million in fiscal 2016 primarily associated with severance and temporary duplication of salaries during the transition of positions from Tamarac to Montreal. These charges represented the last of the expected costs related to the restructuring plan. During fiscal 2015, the Company recorded $2.6 million of restructuring charges. These charges included $1.4 million of severance and employee retention related charges and $0.6 million of transition-related charges associated with the consolidation of positions to Montreal including temporary duplication of salaries during the transition, recruitment costs for positions transferred to Montreal and travel and relocation costs. Restructuring charges also included the recording of a $0.5 million loss on the sublet of a portion of the Tamarac facility and $0.1 million of commission costs associated with the sublease agreement. As of March 26, 2016, accounts payable and accrued liabilities related to these restructuring charges were $0.3 million and cash paid during fiscal 2016 for such charges was $1.8 million. |
Commitments
Commitments | 12 Months Ended |
Mar. 26, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 13. Commitments: Operating leases: The Company leases all of its retail stores under operating leases with the exception of one Birks Group location. The rental costs are based on minimum annual rentals and for some of the stores, a percentage of sales. Such percentage of sales varies by location. In addition, most leases are subject to annual adjustments for increases in real estate taxes and common area maintenance costs. The Company also has operating leases for certain equipment. Future minimum lease payments for the next five years and thereafter are as follows (in thousands): Year ending March: 2017 $ 15,535 2018 13,135 2019 12,272 2020 11,967 2021 10,401 Thereafter 45,057 $ 108,367 Rent expense for the Company was approximately $21.8 million, including $0.5 million of contingent rent for the year ended March 26, 2016, $23.4 million, including $0.7 million of contingent rent for the year ended March 28, 2015 and $24.3 million, including $0.3 million of contingent rent for the year ended March 29, 2014. |
Contingencies
Contingencies | 12 Months Ended |
Mar. 26, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 14. Contingencies: (a) The Company and its subsidiaries, in the normal course of business, become involved from time to time in litigations and claims. While the final outcome with respect to claims and legal proceedings pending at March 26, 2016 cannot be predicted with certainty, management believes that adequate provisions have been recorded in the accounts where required and that the financial impact, if any, from claims related to normal business activities will not be material. (b) From time to time, the Company guarantees a portion of its private label credit card sales to its credit card vendor. At March 26, 2016 and March 28, 2015, the amount guaranteed under such arrangements was approximately $9.3 million and $6.8 million, respectively. At March 26, 2016 and March 28, 2015, the Company has recorded in accrued liabilities a reserve of $0.5 million and $0.2 million, respectively, associated with this guaranteed amount. (c) The Company has entered into an agreement with Prime Investments S.A., a related party, under the terms of which Prime Investments will supply the Company with at least 45%, on an annualized cost basis, of the Company’s loose diamond requirements upon the satisfaction of certain conditions (see note 16(d)). (d) In October 2014, the Company entered into a Renewed and Amended Distribution Agreement with Damiani International B.V. (“Damiani”) amending and extending the term of an agreement, entered into with Damiani during fiscal 2010 in which the Company purchased an aggregate cost value of $10.6 million of jewelry products from Damiani for sale by the Company in Canada and the United States. Under the original agreement the Company agreed to pay for $10.6 million of products on an annual basis beginning on February 15, 2010 based on the cost value of the products sold during the previous year. However, the Company was required to make minimum annual payments totaling an aggregate amount of $5.6 million during the term of the agreement. Under the original agreement, the Company was also required to replenish certain jewelry products sold during each previous quarter with payment on these purchases required within 90 days of receipt during the life of the original agreement. As part of the original agreement, the Company also had the right to return up to $5.0 million of any unsold Damiani products at the end of the term of the agreement. Under the amended agreement, the distribution agreement was extended until March 31, 2016, which was subsequently extended to June 30, 2016. Under the amended agreement, the Company is permitted to exchange $2.0 million of the $5.0 million unsold Damiani products for new Damiani products and agreed to pay for the $5.0 million of Damiani products remaining on an annual basis beginning on February 15, 2015, based on the cost value of the products sold during the previous year. However, the Company is required to make minimum annual payments totaling an aggregate amount of $1.0 million during the remaining term of the amended agreement and has agreed to replenish certain jewelry products sold during each previous quarter with payment on these purchases required within 60 days of receipt during the remaining life of the amended agreement. As part of the amended agreement, the Company has the right to return up to $4.0 million of any unsold Damiani product at the end of the term of the amended agreement. The total amount payable under this agreement is included in accounts payable. |
Segmented information
Segmented information | 12 Months Ended |
Mar. 26, 2016 | |
Segment Reporting [Abstract] | |
Segmented information | 15. Segmented information: The Company has two reportable segments Retail and Other. As of March 26, 2016, Retail operated 27 stores across Canada under the Birks brand, and 17 stores in the Southeastern U.S. under the Mayors brand, 1 store under the Rolex brand name in Orlando, as well as 2 retail locations in Calgary and Vancouver under the Brinkhaus brand. Other consists primarily of our e-commerce The two segments are managed and evaluated separately based on gross profit. The accounting policies used for each of the segments are the same as those used for the consolidated financial statements. Inter-segment sales are made at amounts of consideration agreed upon between the two segments and intercompany profit is eliminated if not yet earned on a consolidated basis. The Company does not evaluate the performance of the Company’s assets on a segment basis for internal management reporting and, therefore, such information is not presented. Certain information relating to the Company’s segments for the years ended March 26, 2016, March 28, 2015, and March 29, 2014, respectively, is set forth below: Retail Other Total 2016 2015 2014 2016 2015 2014 2016 2015 2014 (In thousands) Sales to external customers $ 281,940 $ 293,146 $ 270,630 $ 3,886 $ 8,491 $ 10,535 $ 285,826 $ 301,637 $ 281,165 Inter-segment sales — — — 14,002 15,891 18,320 14,002 15,891 18,320 Unadjusted Gross profit 110,023 118,128 114,210 2,691 5,390 5,663 112,714 123,518 119,873 The following sets forth reconciliations of the segments’ gross profits and certain unallocated costs to the Company’s consolidated gross profits for the years ended March 26, 2016, March 28, 2015 and March 29, 2014: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Unadjusted gross profit $ 112,714 $ 123,518 $ 119,873 Inventory provisions (2,084 ) (3,151 ) (3,010 ) Other unallocated costs (1,630 ) (2,551 ) (2,801 ) Adjustment of intercompany profit 387 (11 ) 605 Gross profit $ 109,387 $ 117,805 $ 114,667 Sales to external customers and long-lived assets by geographical areas were as follows: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Geographic Areas Net sales: Canada $ 128,651 $ 143,384 $ 146,277 United States 157,175 158,253 134,888 $ 285,826 $ 301,637 $ 281,165 Long-lived assets: Canada $ 19,464 $ 17,898 $ 19,484 United States 12,115 13,366 13,281 $ 31,579 $ 31,264 $ 32,765 Classes of Similar Products Net sales: Jewelry and other $ 127,220 $ 141,781 $ 148,511 Timepieces 158,606 159,856 132,654 $ 285,826 $ 301,637 $ 281,165 |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 26, 2016 | |
Related Party Transactions [Abstract] | |
Related party transactions | 16. Related party transactions: (a) The Company is party to certain related party transactions. Balances related to these related parties are disclosed in the consolidated financial statements except the following: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Transactions: Purchases of inventory from supplier related to shareholder (d) $ 503 $ 189 $ — Management fees to related parties (b) 155 238 188 Consultant fees to a related party (e) 173 175 155 Expense reimbursement to a related party (f) 201 241 237 Interest expense on cash advance received from controlling shareholder (c) 165 165 164 Wholesale distribution service payments to a related party (g) — — 1 Balances: Accounts payable to supplier related to shareholder (d) 17 — — Accounts payable to related parties 38 447 57 Interest payable on cash advance received from controlling shareholder 25 136 13 (b) On June 8, 2011, the Board of Directors approved the Company entering into a Management Consulting Service Agreement with Montrovest. Under the agreement, the Company paid Montrovest an annual retainer fee of €140,000 in exchange for services related to the raising of capital for international expansion projects and such other services relating to merchandising and/or marketing of the Company’s products as the Company may request. The agreement was in effect until June 8, 2012 and was extended automatically for successive terms of one year unless either party gave a 60 days’ notice of its intention not to renew. The yearly renewal of the agreement is subject to the review and approval of the Company’s Corporate Governance Committee and the Board of Directors. In fiscal 2016, fiscal 2015 and fiscal 2014, the Company paid €105,000, €140,000 and €140,000 respectively (approximately $116,000, $178,000 and $188,000 in U.S. dollars, respectively), under this agreement to Montrovest. In April 2015, the agreement was renewed for an additional one-year term ending June 8, 2016. The Company’s Board of Directors approved entering into the agreement and its renewal with Montrovest in accordance with the Company’s Code of Conduct relating to related party transactions. In February 2015, the Company’s Board of Directors approved the reimbursement to Montrovest of legal fees incurred by Montrovest in connection with the issuance of the $5.0 million LC for the benefit of the Company up to a total amount of CAD$75,000 (approximately $60,000 in U.S. dollars). Mr. Coda Nunziante, the Company’s Vice President, Strategy was a managing director of Montrovest until June 30, 2012. Mr. Davide Barberis Canonico, one of our directors, is a member of the Supervisory Board of Directors of Montrovest. On November 17, 2015, our Board of Directors approved the termination of the Management Consulting Services Agreement with Montrovest effective December 31, 2015 and the entering into the Management Consulting Services Agreement with Gestofi S.A. (“Gestofi”) effective January 1, 2016 on the same terms and conditions as the agreement with Montrovest, all in accordance with the Company’s Code of Conduct relating to related party transactions. In fiscal 2016, €35,000 (approximately $39,000 in U.S. dollars) was paid to Gestofi under this agreement. (c) In February 2009 and May 2009, the Company received a $2.0 million and a $3.0 million, respectively, cash advance from its controlling shareholder, Montrovest, to finance working capital needs and for general corporate purposes. These advances and any interest thereon are subordinated to the indebtedness of the Company’s existing senior credit facilities and secured term loans and were convertible into a convertible debenture or Class A voting shares in the event of a private placement or repayable upon demand by Montrovest once conditions stipulated in the Company’s senior credit facilities permit such a payment. The cash advance bore interest at an annual rate of 16%, net of any withholding taxes, representing an effective interest rate of approximately 17.8%. If converted into convertible debentures or Class A voting shares, a fee of 7% of the outstanding principal amount of the cash advance would have been paid to Montrovest. In June 2011, the Company amended its cash advance agreements with Montrovest. Under the terms of the amended agreements, the annual interest rate on the $5.0 million in cash advances outstanding was reduced from 16%, net of withholding taxes to 11%, net of withholding taxes representing an effective interest rate of approximately 12.2%. The amended agreements eliminated the convertibility of the cash advances into convertible debentures or Class A voting shares in the event of a private placement and also eliminated the payment of a 7% fee if the debt was converted into convertible debentures or Class A voting shares. The Company also amended its management subordination agreement with Montrovest and its senior lenders, eliminating the payment of any success fee to Montrovest if the Company receives net cash proceeds of $5 million or more related to an equity issuance. The Company paid a one-time fee of $75,000 to Montrovest associated with the amendment of the cash advance agreements. In August 2012, a partial repayment of $3.5 million was made on these cash advances. At March 26, 2016 and March 28, 2015, advances payable to the Company’s controlling shareholder, Montrovest, amounted to $1.5 million. (d) In August 2002, the Company entered into a Diamond Inventory Supply Agreement with Prime Investments S.A. and a series of conditional sale agreements with companies affiliated with Prime Investments S.A. pursuant to which Prime Investments S.A. or a related party is entitled to supply Birks and its subsidiaries or affiliates with at least 45%, on an annualized cost basis, of such company’s aggregate loose diamond requirements, conditional upon the prices remaining competitive relative to market and needs in terms of quality, cut standards and specifications being satisfied. During fiscal 2016, the Company purchased approximately $0.5 million ($0.2 million in fiscal 2015 and nil in fiscal 2014), of diamonds from Prime Investments S.A. and related parties. As of March 26, 2016, Asiya Trust, as trustee of Beech Settlement Trust, which is the ultimate beneficial owner of Prime Investments S.A., owned 15.0% of the Company’s outstanding Class A voting shares. (e) On June 30, 2009, the Company’s Board of Directors approved the Company entering into a consulting services agreement with Gestofi S.A. (“Gestofi”) in accordance with the Company’s Code of Conduct relating to related party transactions. Under the agreement, Gestofi undertook to assign Mr. Niccolò Rossi di Montelera as the employee of Gestofi responsible for providing the consulting services. The consulting services relate to providing advice and assistance in (i) new product development and product brand collection assortment, (ii), strategic and business development projects and financial matters, (iii) the implementation of the Company’s strategy and planning, and (iv) such other services reasonably requested by the Company’s Chief Executive Officer or Chairman (collectively, the “Consulting Services”). The initial one-year term of the agreement began on August 1, 2009, and the agreement may be renewed for additional one-year terms. The agreement has been renewed yearly. The Consulting Services, prior to June 2014, were provided to the Company for a fee of approximately CAD$13,700 ($10,324 in U.S. dollars) per month less any applicable taxes plus out of pocket expenses. In June 2014, upon the renewal of the agreement for an additional one-year term, the monthly fee changed to 13,000 Swiss francs ($13,310 in U.S. dollars) per month. In February 2015, the Company’s Board of Directors approved the payment of a annual fee of $12,500 to Gestofi for services it provided in connection with the issuance of the Montrovest LC for the benefit of the Company. Mr. Niccolò Rossi di Montelera is a member of the Board of Directors and the son of Dr. Lorenzo Rossi di Montelera, Birks Group’s Chairman and a director and chairman of the board of Gestofi. On August 1, 2015 an amended and restated consulting agreement was entered into on substantially the same terms and conditions until July 31, 2016. In June 2016, the agreement was renewed for an additional one-year term. (f) In accordance with the Company’s Code of Conduct related to related party transactions, in April 2011, the Corporate Governance Committee and Board of Directors approved the reimbursement of expenses to Regaluxe S.R.L., such as rent, communication, administrative support and analytical service costs, incurred in supporting the office of Dr. Lorenzo Rossi di Montelera, the Company’s Chairman of the Board of Directors, and of Mr. Niccolò Rossi di Montelera, the Chairman of the Company’s Executive Committee, for work performed on behalf of the Company, up to a yearly maximum of $250,000. The yearly maximum was increased to $260,000 in fiscal 2014. During fiscal 2016, 2015 and 2014, the Company paid $201,000, $241,000 and $237,000, respectively, to Regaluxe under this agreement, respectively. This agreement was renewed in March 2016 for an additional year term. (g) In April 2011, the Corporate Governance Committee and Board of Directors approved the Company’s entering in a Wholesale and Distribution Agreement with Regaluxe S.r.l. Under the agreement, Regaluxe S.r.l. is to provide services to the Company to support the distribution of the Company’s products in Italy through authorized dealers. The initial one-year term of the agreement began on April 1, 2011. Under this agreement the Company pays Regaluxe S.r.l. a net price for the Company’s products equivalent to the price, net of taxes, for the products paid by retailers to Regaluxe S.r.l. less a discount factor of 3.5%. The agreement’s initial term was until March 30, 2013 and is renewable by mutual agreement for additional one-year terms. This agreement has been renewed yearly and in March 2016, this agreement was renewed for an additional one-year term. During fiscal 2016 and 2015, the Company did not make any payments under this agreement in fiscal 2014, we paid approximately $1,000 under this agreement. (h) In August 2013, the Company executed $5.0 million convertible debenture agreements of which $4.8 million was with its controlling shareholder, Montrovest B.V. (“Montrovest”), convertible into Class A voting shares (the “Debentures”). The Debentures had an annual interest rate of 6%, payable in the form of additional Class A voting shares at the time of conversion of the Debentures at the same conversion price as the Debentures. The $5.0 million of Debentures were converted into 2,941,085 Class A voting shares at the end of August 2013 at an average price of $1.70 per share of which Montrovest received 2,828,634 Class A voting shares of the Company. |
Financial instruments
Financial instruments | 12 Months Ended |
Mar. 26, 2016 | |
Investments, All Other Investments [Abstract] | |
Financial instruments | 17. Financial instruments: (a) Concentrations: During the years ended March 26, 2016, March 28, 2015 and March 29, 2014, approximately 39%, 36% and 32%, respectively, of consolidated sales were of merchandise purchased from the Company’s largest supplier. (b) Fair value of financial instruments: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. U.S. GAAP prescribes three levels of inputs that may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 1 inputs are considered to carry the most weight within the fair value hierarchy due to the low levels of judgment required in determining fair values. Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 – Unobservable inputs reflecting the reporting entity’s own assumptions. Level 3 inputs are considered to carry the least weight within the fair value hierarchy due to substantial levels of judgment required in determining fair values. The Company has determined that the carrying value of its cash and cash equivalents, accounts receivable and accounts payable and accrued liabilities approximates fair values as at the balance sheet date. As of March 26, 2016 and March 28, 2015, for the $63.2 million and $64.3 million, respectively, of bank indebtedness and the $40.8 million and $41.7 million, respectively of long-term debt bearing interest at variable rates, the fair value is considered to approximate the carrying value. As of March 26, 2016 and March 28, 2015, the fair value of the remaining $12.4 million and $15.1 million, respectively of fixed-rate long-term debt is estimated to be approximately $12.9 million and $15.5 million, respectively. The fair value was determined by discounting the future cash flows of each instrument at the current market interest rates for the same or similar debt instruments with the same remaining maturities adjusted for all necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, the Company considered interest rates currently offered to the Company for similar debt instruments of comparable maturities by the Company’s lenders. As a result, the Company has determined that the inputs used to value these long-term debts fall within Level 3 of the fair value hierarchy. |
Significant accounting polici27
Significant accounting policies (Policies) | 12 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
Revenue recognition | (a) Revenue recognition: Sales are recognized at the point of sale when merchandise is picked up by the customer or delivered to a customer. Shipping and handling fees billed to customers are included in net sales. Revenues for gift certificate sales and store credits are recognized upon redemption. Prior to recognition as a sale, gift certificates are recorded as accounts payable on the balance sheet. Based on historical redemption rates, a portion of gift certificates and store credits, not subject to unclaimed property laws, are recorded as income. Gift certificates and store credits outstanding and subject to unclaimed property laws are maintained as accrued liabilities until remitted in accordance with local ordinances. Sales of consignment merchandise are recognized at such time as the merchandise is sold, and are recorded on a gross basis because the Company is the primary obligor of the transaction, has general latitude on setting the price, has discretion as to the suppliers, is involved in the selection of the product and has inventory loss risk. Sales are reported net of returns and sales taxes. The Company generally gives its customers the right to return merchandise purchased by them within 10 to 90 days, depending on the product sold and records a provision at the time of sale for the effect of the estimated returns. Revenues for repair services are recognized when the service is delivered to and accepted by the customer. Revenue related to the Company’s purchases of gold and other precious metals from our customers are recognized when the Company delivers the goods, and receives and accepts an offer from a refiner to purchase the gold and other precious metal. Licensing fees are recognized when the product is delivered to and accepted by the customer. |
Cost of sales | (b) Cost of sales: Cost of sales includes direct inbound freight and duties, direct labor related to repair services, design and creative, the jewelry studio, inventory shrink, inventory thefts, and boxes (jewelry, watch and giftware). Indirect freight including inter-store transfers, purchasing and receiving costs, distribution costs and warehousing costs are included in selling, general and administrative expenses. Purchase discounts are recorded as a reduction of inventory cost and are recorded to cost of sales as the items are sold. Mark down dollars received from vendors are recorded as a reduction of inventory costs to the specific items to which they apply and are recognized in cost of sales once the items are sold. Other vendor allowances, primarily related to the achievement of certain milestones, are infrequent and insignificant and are recognized upon achievement of the specified milestone in cost of sales. Included in cost of sales is depreciation related to manufacturing machinery, equipment and facilities of $46,000, $59,000 and $97,000 for the fiscal years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. |
Cash and cash equivalents | (c) Cash and cash equivalents: The Company utilizes a cash management system under which a book cash overdraft may exist in its primary disbursement account. These overdrafts, when applicable, represent uncleared checks in excess of cash balance in the bank account at the end of a reporting period and have been reclassified to accounts payable on the consolidated balance sheets. The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Amounts receivable from credit card issuers are included in cash and cash equivalents and are typically converted to cash within 2 to 4 days of the original sales transaction. These amounts totaled $2.3 million and $2.4 million at March 26, 2016 and March 28, 2015, respectively. |
Accounts receivable | (d) Accounts receivable: Accounts receivable arise primarily from customers’ use of the Mayors credit card and wholesale sales. Several installment sales plans are offered to the Mayors credit card holders which vary as to repayment terms and finance charges. Finance charges on Mayors’ consumer credit receivables, when applicable, accrue at rates ranging from 0% to 9.9% per annum for financing plans. The Company maintains allowances for doubtful accounts associated with the accounts receivable recorded on the balance sheet for estimated losses resulting from the inability of its customers to make required payments. The allowance is determined based on a combination of factors including, but not limited to, the length of time that the receivables are past due, the Company’s knowledge of the customer, economic and market conditions and historical write-off experiences. The Company classifies a receivable account as past due if a required payment amount has not been received within the allotted time frame (generally 30 days), after which internal collection efforts commence. Once all internal collection efforts have been exhausted and management has reviewed the account, the account is put on nonaccrual status and may be sent for external collection or legal action. Upon the suspension of the accrual of interest, interest income is recognized to the extent cash payments received exceed the balance of the principal amount owed on the account. After all collection efforts have been exhausted, including internal and external collection efforts, an account is written off. The Company guarantees a portion of its private label credit card sales to its credit card vendor. The Company maintains a liability associated with these outstanding amounts. Similar to the allowance for doubtful accounts, the liability related to these guaranteed sales amounts are based on a combination of factors including the length of time the receivables are past due to the Company’s credit card vendor, the Company’s knowledge of the customer, economic and market conditions and historical write-off experiences of similar credits. If the financial conditions of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. |
Inventories | (e) Inventories: Retail inventories and inventories of raw materials are valued at the lower of average cost or market. Inventories of work in progress and Company manufactured finished goods are valued at the lower of average cost (which includes material, labor and overhead costs) or market. The Company records provisions for lower of cost or market, damaged goods, and slow-moving inventory. The cost of inbound freight and duties are included in the carrying value of the inventories. The allowance for inventory shrink is estimated for the period from the last physical inventory date to the end of the reporting period on a store by store basis and at our factories and distribution centers. The shrink rate from the most recent physical inventory, in combination with historical experience, is the basis for providing a shrink allowance. Inventory is written down for estimated slow moving inventory equal to the difference between the cost of inventory and the estimated market value based on assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. |
Property and equipment | (f) Property and equipment: Property and equipment are recorded at cost. Maintenance and repair costs are charged to selling, general and administrative expenses as incurred, while expenditures for major renewals and improvements are capitalized. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets as follows: Asset Period Buildings Lesser of term of the lease or the economic life Leasehold improvements Lesser of term of the lease or the economic life Software and electronic equipment 1 - 6 years Molds 2 - 5 years Furniture and fixtures 5 - 8 years Equipment 3 - 8 years |
Intangible assets | (g) Intangible assets: Trademarks and tradenames are amortized using the straight-line method over a period of 15 to 20 years. The Company had $1.8 million and $1.8 million of intangible assets at March 26, 2016 and March 28, 2015, respectively. The Company had $1.0 million and $0.9 million of accumulated amortization of intangibles at March 26, 2016 and March 28, 2015, respectively. |
Deferred financing costs | (h) Deferred financing costs: The Company amortizes deferred financing costs incurred in connection with its financing agreements using the effective interest method over the term of the related financing. Such deferred costs are included in other assets in the accompanying consolidated balance sheets. |
Warranty accrual | (i) Warranty accrual: The Company generally provides warranties on its jewelry and watches for periods extending up to three years and has a battery replacement policy for its private label watches. The Company accrues a liability based on its historical repair costs for such warranties. |
Income taxes | (j) Income taxes: Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial statement reporting purposes and the bases for income tax purposes, and (b) operating losses and tax credit carryforwards. Deferred income tax assets are evaluated and, if realization is not considered to be more-likely-than-not, a valuation allowance is provided (see note 10(a)). |
Foreign exchange | (k) Foreign exchange: Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange in effect at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing at the respective transaction dates. Revenue and expenses denominated in foreign currencies are translated at average rates prevailing during the year. Foreign exchange losses of $0.3 million, $0.4 million and $0.2 million were recorded in cost of goods sold for the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively and $0.2 million, $0.5 million and $0.3 million of losses on foreign exchange were recorded in interest and other financial costs related to U.S. dollar denominated debt of the Company’s Canadian operations for the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. Birks Group’s Canadian operations’ functional currency is the Canadian dollar while the reporting currency of the Company is the U.S. dollar. The assets and liabilities denominated in Canadian dollars are translated for reporting purposes at exchange rates in effect at the balance sheet dates. Revenue and expense items are translated at average exchange rates prevailing during the periods. The resulting gains and losses are accumulated in other comprehensive income. |
Impairment of long-lived assets | (l) Impairment of long-lived assets: The Company periodically reviews the estimated useful lives of its depreciable assets and changes in useful lives are made on a prospective basis unless factors indicate the carrying amounts of the assets may not be recoverable and an impairment write-down is necessary. However, the Company will review its long-lived assets for impairment once events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when the estimated undiscounted future cash flows expected to result from the use of an asset and its eventual disposition is less than its carrying value. Measurement of an impairment loss for such long-lived assets would be based on the difference between the carrying value and the fair value of the asset, with fair value being determined based upon discounted cash flows or appraised values, depending on the nature of the asset. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During fiscal 2015, the Company recorded impairment charges on long-lived assets of $0.2 million associated with a Canadian Birks retail shop-in-shop location due to the projected operating performance of the location and a software impairment associated with a decision to abandon a software project. No impairment charge was recorded in fiscal 2016 and 2014. |
Advertising and marketing costs | (m) Advertising and marketing costs: Advertising and marketing costs are generally charged to expense as incurred and are included in selling, general and administrative expenses in the consolidated statements of operations. However, certain expenses such as those related to catalogs are expensed at the time such catalogs are shipped to recipients. The Company and its vendors participate in cooperative advertising programs in which the vendors reimburse the Company for a portion of certain specific advertising costs which are netted against advertising expense in selling, general and administrative expenses, and amounted to $2.7 million, $2.9 million and $2.6 million for each of the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. Advertising and marketing expense, net of vendor cooperative advertising allowances, amounted to $9.0 million, $9.5 million and $11.0 million in the years ended March 26, 2016, March 28, 2015 and March 29, 2014, respectively. |
Restructuring charges | (n) Restructuring charges: Restructuring charges consist of exit costs and other costs associated with the reorganization of the Company’s operations, including the consolidation of most of the Company’s administrative workforce from its regional office in Tamarac, Florida to its Montreal corporate head office. Restructuring charges include severance and stay bonuses for employees being terminated, sublease costs and related losses recognized related to the abandonment of a portion of the Company’s Tamarac facilities and other costs related to the transition of administrative positions to Montreal including employee recruitment costs, temporary duplication of salaries related to the transition and travel and relocation costs. Costs associated with restructuring activities are recorded when the liability is incurred or when such costs are deemed probable and estimable and represent the Company’s best estimate. |
Pre-opening expenses | (o) Pre-opening expenses: Pre-opening expenses related to the opening of new and relocated stores are expensed in the period incurred. |
Operating leases | (p) Operating leases: All material lessor incentive amounts on operating leases are deferred and amortized as a reduction of rent expense over the term of the lease. Rent expense is recorded on a straight-line basis, which takes into effect any rent escalations, rent holidays and fixturing periods. Lease terms are from the inception of the fixturing period until the end of the initial lease term and generally exclude renewal periods. However, renewal periods would be included in instances in which the exercise of the renewal period option would be reasonably assured and failure to exercise such option would result in an economic penalty. Contingent rent payments vary by lease, are based on a percentage of revenue above a predetermined sales level and are expensed when it becomes probable the sales levels will be achieved. This level is different for each location and includes and excludes various types of sales. |
Earnings per common share | (q) Earnings per common share: Basic earnings per share (“EPS”) is computed as net earnings divided by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the dilutive effect of the assumed exercise of stock options, warrants and equity settled stock appreciation rights. The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 26, 2016, March 28, 2015 and March 29, 2014: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands, except per share data) Basic income (loss) per common share computation: Numerator: Net income (loss) $ 5,438 $ (8,632 ) $ (5,801 ) Denominator: Weighted-average common shares outstanding 17,961 17,937 16,617 Income (loss) per common share $ 0.30 $ (0.48 ) $ (0.35 ) Diluted income (loss) per common share computation: Numerator: Net income (loss) $ 5,438 $ (8,632 ) $ (5,801 ) Denominator: Weighted-average common shares outstanding 17,961 17,937 16,617 Dilutive effect of stock options, warrants and stock appreciation rights (SARs) — — — Weighted-average common shares outstanding – diluted 17,961 17,937 16,617 Diluted income (loss) per common share $ 0.30 $ (0.48 ) $ (0.35 ) For the year ended March 26, 2016, the effect from the assumed exercise of 666,789 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 28, 2015, the effect from the assumed exercise of 442,088 Class A voting shares underlying outstanding stock options and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. For the year ended March 29, 2014, the effect from the assumed exercise of 668,421 Class A voting shares underlying outstanding stock options, 4,347 stock appreciation rights and 382,693 Class A voting shares underlying outstanding warrants was excluded from the computation of diluted earnings per share due to their antidilutive effect. |
Commodity and currency risk | (r) Commodity and currency risk: The Company has exposure to market risk related to gold, silver, platinum and diamond purchases and foreign exchange risk. The Company may periodically enter into gold futures contracts to economically hedge a portion of these risks. During the years ended and as of March 26, 2016 and March 28, 2015, there were no such contracts outstanding. |
Recent Accounting Pronouncements | (s) Recent Accounting Pronouncements adopted during the year: In May 2014, the FASB issued Accounting Standards Update (“ASU”) ASU 2014-08, Presentation of Financial Statements Property, Plant and Equipment Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (t) Recent Accounting Pronouncement not yet adopted: On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-05 – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (an update to Subtopic 350-40, Intangibles – Goodwill and Other – Internal-Use Software ) In July 2015, the FASB issued ASU No. 2015-11 – Inventory (Topic 330): Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” |
Significant accounting polici28
Significant accounting policies (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets as follows: Asset Period Buildings Lesser of term of the lease or the economic life Leasehold improvements Lesser of term of the lease or the economic life Software and electronic equipment 1 - 6 years Molds 2 - 5 years Furniture and fixtures 5 - 8 years Equipment 3 - 8 years |
Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted earnings per common share for the years ended March 26, 2016, March 28, 2015 and March 29, 2014: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands, except per share data) Basic income (loss) per common share computation: Numerator: Net income (loss) $ 5,438 $ (8,632 ) $ (5,801 ) Denominator: Weighted-average common shares outstanding 17,961 17,937 16,617 Income (loss) per common share $ 0.30 $ (0.48 ) $ (0.35 ) Diluted income (loss) per common share computation: Numerator: Net income (loss) $ 5,438 $ (8,632 ) $ (5,801 ) Denominator: Weighted-average common shares outstanding 17,961 17,937 16,617 Dilutive effect of stock options, warrants and stock appreciation rights (SARs) — — — Weighted-average common shares outstanding – diluted 17,961 17,937 16,617 Diluted income (loss) per common share $ 0.30 $ (0.48 ) $ (0.35 ) |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Receivables [Abstract] | |
Summary of Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts receivable, net of allowance for doubtful accounts, at March 26, 2016 and March 28, 2015 consist of the following: As of March 26, 2016 March 28, 2015 (In thousands) Customer trade receivables $ 8,041 $ 5,384 Other receivables 2,252 2,312 $ 10,293 $ 7,696 |
Schedule of Continuity of Allowance for Doubtful Accounts | Continuity of the allowance for doubtful accounts is as follows (in thousands): Balance March 30, 2013 $ 2,109 Reduction in provision recorded (7 ) Net write-offs (296 ) Balance March 29, 2014 1,806 Additional provision recorded 613 Net write-offs (160 ) Balance March 28, 2015 2,259 Additional provision recorded 190 Net write-offs (294 ) Balance March 26, 2016 $ 2,155 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net of Obsolescence Reserve | Inventories, net of obsolescence reserve, are summarized as follows: As of March 26, 2016 March 28, 2015 (In thousands) Raw materials $ 4,301 $ 5,587 Work in progress 95 84 Retail inventories and manufactured finished goods 133,443 130,068 $ 137,839 $ 135,739 |
Continuity of Obsolescence Reserve for Inventory | Continuity of the obsolescence reserve for inventory is as follows (in thousands): Balance March 30, 2013 $ 3,557 Additional charges 1,214 Deductions (2,257 ) Balance March 29, 2014 2,514 Additional charges 1,545 Deductions (1,313 ) Balance March 28, 2015 2,746 Additional charges 626 Deductions (1,228 ) Balance March 26, 2016 $ 2,144 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows: As of March 26, 2016 March 28, 2015 (In thousands) Land $ 4,909 $ 5,178 Buildings 7,274 7,664 Leasehold improvements 36,550 41,153 Equipment 1,933 2,083 Molds 838 934 Furniture and fixtures 9,858 9,914 Software and electronic equipment 19,155 19,911 80,517 86,837 Accumulated depreciation (51,098 ) (58,293 ) $ 29,419 $ 28,544 |
Bank indebtedness (Tables)
Bank indebtedness (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Company's Senior Credit Facility | The information concerning the Company’s senior secured credit facility is as follows: Fiscal Year Ended March 26, 2016 March 28, 2015 (In thousands) Maximum borrowing outstanding during the year $ 78,137 $ 86,450 Average outstanding balance during the year $ 68,205 $ 73,207 Weighted average interest rate for the year 3.2% 3.3% Effective interest rate at year-end 3.3% 3.2% |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | (a) Long-term debt consists of the following: As of March 26, 2016 March 28, 2015 (In thousands) Senior secured term loans that are subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bears interest at an annual rate of LIBOR plus 9.75% on $28 million of debt and LIBOR plus 7.25% on $5 million of debt. The term of the loan expires in August 2018 $ 33,000 $ 33,000 Senior secured term loan that is subordinated in lien priority to the Company’s senior secured revolving credit facility. The loan bore interest at an annual rate of LIBOR plus 9.75%. The loan was repaid in May 2016 1,250 — Obligation under capital lease on land and building, pursuant to a sale-leaseback transaction. The term loan is being amortized using an implicit annual interest rate of 10.74% over the term of the lease of 20 years with a balloon payment related to the land component and is repayable in monthly installments of approximately $139,063 (CAD$184,537). The balance at March 26, 2016 and March 28, 2015 was CAD$12.1 million and CAD$12.8 million, respectively (f) 9,141 10,211 Term loan from Investissement Quebec, bearing interest at an annual rate of prime plus 7.0%, repayable beginning in October 2014 in 60 equal monthly principal payments of $62,798 (CAD$83,333), secured by the assets of the Company. The balance at March 26, 2016 and March 28, 2015 was CAD$3.7 million and CAD$4.6 million, respectively (b) 2,826 3,643 Term loan from Investissement Québec, bearing interest at an annual rate of prime plus 5.5%, repayable beginning in April 2012 in 48 equal monthly capital repayments of $156,995 (CAD$208,333), secured by the assets of the Company. The balance at March 26, 2016 and March 28, 2015 was CAD$3.1 million and CAD$4.4 million, respectively (b) 2,355 3,478 Term loan from Investissement Québec, bearing interest at an annual rate of Canadian prime plus 10%, repayable beginning in August 2015 in 48 equal monthly principal payment of $31,399 (CAD$41,667), secured by the assets of the Company. The balance at March 26, 2016 and March 28, 2015 was CAD$1.8 million and 2.0 million respectively (b) 1,383 1,590 Obligations under capital leases, at annual interest rates between 5.8% and 14.9%, secured by leasehold improvements, furniture, and equipment, maturing at various dates to March 2021 1,719 3,362 Cash advance provided by the Company’s controlling shareholder, Montrovest, bearing interest at an annual rate of 11%, net of withholding taxes (note 16(c)) 1,500 1,500 53,174 56,784 Current portion of long-term debt 5,670 4,745 $ 47,504 $ 52,039 |
Summary of Future Minimum Lease Payments for Capital Leases | (c) Future minimum lease payments for capital leases required in the following five years and thereafter are as follows (in thousands): Year ending March: 2017 $ 2,967 2018 2,180 2019 1,698 2020 1,680 2021 6,171 Thereafter — 14,696 Less imputed interest 3,836 $ 10,860 |
Summary of Principal Payment on Long Term Debt Including Obligation Under Capital Lease | (d) Principal payments on long-term debt required in the following five years and thereafter, including obligations under capital leases, are as follows (in thousands): Year ending March: 2017 $ 5,670 2018 3,580 2019 35,049 2020 1,637 2021 5,738 Thereafter 1,500 $ 53,174 |
Benefit plans and stock-based34
Benefit plans and stock-based compensation (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Birks Stock Option Plan [Member] | |
Summary of Activity of Stock Option Plans and Arrangements | The following is a summary of the activity of Birks’ stock option plans and arrangements. Options Weighted average Outstanding March 30, 2013 624,618 $ 1.18 Granted 165,000 1.16 Exercised (74,813 ) 1.00 Forfeited (50,220 ) 1.07 Outstanding March 29, 2014 664,585 1.21 Granted 50,000 1.94 Exercised (111,372 ) 1.04 Expired (15,000 ) 7.73 Forfeited (147,051 ) 1.10 Outstanding March 28, 2015 441,162 1.15 Granted 235,000 0.78 Forfeited (10,000 ) 1.10 Outstanding March 26, 2016 666,162 $ 1.02 |
Summary of Status of Stock Options | A summary of the status of Birks’ stock options at March 26, 2016 is presented below: Options outstanding Options exercisable Exercise price Number Weighted Weighted Number Weighted $ 0.78 235,000 9.5 0.78 — — $ 0.84 100,000 7.1 $ 0.84 66,666 $ 0.84 $ 0.89 55,000 6.6 0.89 55,000 0.89 $ 1.04-1.05 156,162 5.7 1.04 156,162 1.04 $ 1.25-1.66 70,000 6.2 1.48 56,666 1.44 $ 1.94 50,000 8.8 1.94 16,666 1.94 666,162 7.6 $ 1.02 351,160 $ 1.09 |
Mayors Stock Option Plan [Member] | |
Summary of Status of Stock Options | A summary of the status of the option plans at March 26, 2016 is presented below: Options outstanding and exercisable Exercise price Number Weighted average Weighted average $ 1.05 627 4.1 $ 1.05 |
Summary of Stock Option Activity | The following is a summary of the activity of Mayors stock option plans: Options Weighted average Outstanding March 30, 2013 9,081 $ 7.18 Expired (5,245 ) 8.63 Outstanding March 29, 2014 3,836 5.19 Expired (2,910 ) 6.51 Outstanding March 28, 2015 926 1.05 Expired (299 ) 1.05 Outstanding March 26, 2016 627 $ 1.05 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Net Deferred Tax Assets | The significant items comprising the Company’s net deferred tax assets at March 26, 2016 and March 28, 2015 are as follows: Fiscal Year Ended March 26, 2016 March 28, 2015 Deferred tax assets: (In thousands) Loss and tax credit carry forwards $ 39,710 $ 42,619 Difference between book and tax basis of property and equipment 2,731 2,513 Interest expense limitations carry forward 10,697 9,069 Inventory allowances 417 529 Other reserves not currently deductible 807 850 Capital lease obligation 2,431 2,696 Expenses not currently deductible 667 378 Other (175 ) 144 Net deferred tax asset before valuation allowance 57,285 58,798 Valuation allowance (57,285 ) (58,798 ) Net deferred tax asset $ — $ — |
Reconciliation of Unrecognized Tax Benefits | The following table reconciles the unrecognized tax benefits at March 26, 2016 and March 28, 2015: Fiscal Year Ended March 26, 2016 March 28, 2015 (In thousands) Unrecognized tax benefits at the beginning of the year $ — $ — Gross increase – tax position in current period — 89 Applied against certain element of deferred tax assets — (89 ) Unrecognized tax benefits at the end of the year $ — $ — |
Components of Income Tax Expense (Benefit) | The Company’s income tax expense (benefit) consists of the following components: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Income tax expense (benefit): Current $ 50 $ 77 $ 183 Deferred 1,591 (2,636 ) (1,525 ) Valuation allowance (1,591 ) 2,559 1,360 Income tax expense $ 50 — $ 18 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s provision for income taxes varies from the amount computed by applying the statutory income tax rates for the reasons summarized below: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 Canadian statutory rate 26.6 % 26.4 % 26.4 % Rate differential for U.S. operations 6.5 % 5.1 % 2.0 % Adjustment to valuation allowance 3.2 % (30.7 )% (26.8 )% Utilization of unrecognized losses and other tax attributes (32.2 )% 0.0 % 0.0 % Permanent differences and other (3.2 )% (0.8 )% (2.1 )% Total 0.9 % (0.0 )% (0.5 )% |
Capital stock (Tables)
Capital stock (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Equity [Abstract] | |
Summary of Common Stock Outstanding | The issued and outstanding shares are as follows: Class A common stock Class B common stock Total common stock Number of Shares Amount Number of Shares Amount Number of Shares Amount Balance as of March 29, 2014 10,131,539 $ 30,862 7,717,970 $ 38,613 17,849,509 $ 69,475 Exercise of stock options 111,372 126 — — 111,372 126 Balance as of March 28, 2015 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 Exercise of stock options — — — — — — Balance as of March 26, 2016 10,242,911 $ 30,988 7,717,970 $ 38,613 17,960,881 $ 69,601 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Future Payments Under Leases | Future minimum lease payments for the next five years and thereafter are as follows (in thousands): Year ending March: 2017 $ 15,535 2018 13,135 2019 12,272 2020 11,967 2021 10,401 Thereafter 45,057 $ 108,367 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Information Relating to Segments | Certain information relating to the Company’s segments for the years ended March 26, 2016, March 28, 2015, and March 29, 2014, respectively, is set forth below: Retail Other Total 2016 2015 2014 2016 2015 2014 2016 2015 2014 (In thousands) Sales to external customers $ 281,940 $ 293,146 $ 270,630 $ 3,886 $ 8,491 $ 10,535 $ 285,826 $ 301,637 $ 281,165 Inter-segment sales — — — 14,002 15,891 18,320 14,002 15,891 18,320 *Unadjusted Gross profit 110,023 118,128 114,210 2,691 5,390 5,663 112,714 123,518 119,873 |
Schedule of Reconciliations of Segments Gross Profits and Certain Unallocated Costs to Consolidated Gross Profits | The following sets forth reconciliations of the segments’ gross profits and certain unallocated costs to the Company’s consolidated gross profits for the years ended March 26, 2016, March 28, 2015 and March 29, 2014: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Unadjusted gross profit $ 112,714 $ 123,518 $ 119,873 Inventory provisions (2,084 ) (3,151 ) (3,010 ) Other unallocated costs (1,630 ) (2,551 ) (2,801 ) Adjustment of intercompany profit 387 (11 ) 605 Gross profit $ 109,387 $ 117,805 $ 114,667 |
Schedule of Sales to External Customers and Long-Lived Assets by Geographical Area | Sales to external customers and long-lived assets by geographical areas were as follows: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Geographic Areas Net sales: Canada $ 128,651 $ 143,384 $ 146,277 United States 157,175 158,253 134,888 $ 285,826 $ 301,637 $ 281,165 Long-lived assets: Canada $ 19,464 $ 17,898 $ 19,484 United States 12,115 13,366 13,281 $ 31,579 $ 31,264 $ 32,765 Classes of Similar Products Net sales: Jewelry and other $ 127,220 $ 141,781 $ 148,511 Timepieces 158,606 159,856 132,654 $ 285,826 $ 301,637 $ 281,165 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Mar. 26, 2016 | |
Related Party Transactions [Abstract] | |
Balance Related to Related Parties | (a) The Company is party to certain related party transactions. Balances related to these related parties are disclosed in the consolidated financial statements except the following: Fiscal Year Ended March 26, 2016 March 28, 2015 March 29, 2014 (In thousands) Transactions: Purchases of inventory from supplier related to shareholder (d) $ 503 $ 189 $ — Management fees to related parties (b) 155 238 188 Consultant fees to a related party (e) 173 175 155 Expense reimbursement to a related party (f) 201 241 237 Interest expense on cash advance received from controlling shareholder (c) 165 165 164 Wholesale distribution service payments to a related party (g) — — 1 Balances: Accounts payable to supplier related to shareholder (d) 17 — — Accounts payable to related parties 38 447 57 Interest payable on cash advance received from controlling shareholder 25 136 13 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) CAD in Millions | Aug. 04, 2015USD ($) | Nov. 30, 2015USD ($) | Nov. 30, 2015CAD | Mar. 26, 2016USD ($) | Mar. 28, 2015USD ($) | Mar. 29, 2014USD ($) | Mar. 26, 2017USD ($) | Mar. 26, 2016CAD | Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($) |
Organization And Description Of Business [Line Items] | ||||||||||
Net (loss) income | $ 5,438,000 | $ (8,632,000) | $ (5,801,000) | |||||||
Estimated capital expenditures | 8,800,000 | |||||||||
Estimated capital expenditures, fiscal 2017 | 4,300,000 | |||||||||
Senior secured revolving credit facility reserve | 8,000,000 | |||||||||
Bank indebtedness | 63,209,000 | 64,347,000 | ||||||||
Senior secured revolving credit facility, excess availability | $ 16,200,000 | 12,900,000 | ||||||||
Secured credit facility description | The Company is required to maintain minimum adjusted EBITDA levels (calculated on a twelve-month rolling basis as defined in the agreement) if the Company’s availability under its senior secured revolving credit facility is below $8.0 million for any five consecutive business days. Failure to meet the minimum adjusted EBITDA covenant in the event that availability falls below $8.0 million as described above is considered an event of default, that could result in the outstanding balances borrowed under the Company’s senior secured term loan and senior secured revolving credit facility becoming due immediately, and will result in cross defaults on the Company’s other borrowings. | |||||||||
Secured credit facility | $ 8,000,000 | |||||||||
Gross proceeds from sale of assets | $ 4,300,000 | |||||||||
Store [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Percentage of leases require capital expenditure for renewal | 30.00% | |||||||||
Leases renewal term | 2 years | |||||||||
Percentage of leases require capital expenditure | 15.00% | |||||||||
Investissement Quebec [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Long-term debt | $ 6,600,000 | CAD 8.6 | ||||||||
Reduction of monthly capital requirements | $ 1,500,000 | CAD 2 | ||||||||
Minimum capital ratio required | 1.15 | |||||||||
Investissement Quebec [Member] | Minimum [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Adjusted long-term debt to adjusted net assets ratio | 2.5 | |||||||||
Senior Secured Revolving Credit Facility [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Senior secured credit facility | $ 110,000,000 | |||||||||
Senior secured revolving credit facility, excess availability | $ 16,200,000 | $ 12,900,000 | ||||||||
Line of Credit Facility Expiration Date | Aug. 22, 2017 | |||||||||
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Senior secured revolving credit facility reserve | $ 8,000,000 | |||||||||
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | Scenario, Forecast [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Senior secured revolving credit facility reserve | $ 8,000,000 | |||||||||
Senior Secured Term Loan [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Senior secured credit facility | $ 35,500,000 | $ 33,000,000 | ||||||||
Line of Credit Facility Expiration Date | Aug. 22, 2018 | |||||||||
Revolving Credit Facility [Member] | Recapitalization [Member] | Maximum [Member] | ||||||||||
Organization And Description Of Business [Line Items] | ||||||||||
Additional reserve established by lenders | $ 2,500,000 |
Significant Accounting Polici41
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Significant Accounting Policies [Line Items] | |||
Depreciation of assets | $ 46,000 | $ 59,000 | $ 97,000 |
Amounts receivable from credit card issuers | $ 2,300,000 | 2,400,000 | |
Accounts receivable periods | 30 days | ||
Amortization method of intangible assets | Trademarks and tradenames are amortized using the straight-line method over a period of 15 to 20 years. | ||
Intangible assets | $ 1,800,000 | 1,800,000 | |
Accumulated amortization of intangible assets | $ 1,000,000 | 900,000 | |
Period of warranties | 3 years | ||
Asset impairment charges | $ 0 | 200,000 | 0 |
Reimbursement of advertising cost | 2,700,000 | 2,900,000 | 2,600,000 |
Advertising and marketing expense | 9,000,000 | $ 9,500,000 | $ 11,000,000 |
Reclassifying deferred financing costs | $ 1,700,000 | ||
Stock Options [Member] | |||
Significant Accounting Policies [Line Items] | |||
Outstanding | 666,789 | 442,088 | 668,421 |
Warrants [Member] | |||
Significant Accounting Policies [Line Items] | |||
Outstanding | 382,693 | 382,693 | 382,693 |
Stock Appreciation Rights [Member] | |||
Significant Accounting Policies [Line Items] | |||
Outstanding | 4,347 | ||
Cost of Goods Sold [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign exchange losses | $ (300,000) | $ (400,000) | $ (200,000) |
Interest and Other Financial Costs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign exchange losses | $ (200,000) | $ (500,000) | $ (300,000) |
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Product return, Days | 90 days | ||
Consumer credit receivable charges | 9.90% | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Product return, Days | 10 days | ||
Consumer credit receivable charges | 0.00% |
Significant Accounting Polici42
Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Mar. 26, 2016 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | Lesser of term of the lease or the economic life |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | Lesser of term of the lease or the economic life |
Software and Electronic Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 1 year |
Software and Electronic Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 6 years |
Molds [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 2 years |
Molds [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 8 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 8 years |
Significant Accounting Polici43
Significant Accounting Policies - Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Numerator: | |||
Net income (loss) | $ 5,438 | $ (8,632) | $ (5,801) |
Denominator: | |||
Weighted-average common shares outstanding | 17,961 | 17,937 | 16,617 |
Income (loss) per common share | $ 0.30 | $ (0.48) | $ (0.35) |
Numerator: | |||
Net income (loss) | $ 5,438 | $ (8,632) | $ (5,801) |
Denominator: | |||
Weighted-average common shares outstanding | 17,961 | 17,937 | 16,617 |
Dilutive effect of stock options, warrants and stock appreciation rights (SARs) | 0 | 0 | 0 |
Weighted-average common shares outstanding - diluted | 17,961 | 17,937 | 16,617 |
Diluted income (loss) per common share | $ 0.30 | $ (0.48) | $ (0.35) |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable, Net of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 |
Receivables [Abstract] | ||
Customer trade receivables | $ 8,041 | $ 5,384 |
Other receivables | 2,252 | 2,312 |
Total | $ 10,293 | $ 7,696 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Accounts Receivables [Line Items] | ||
Customer trade receivables | $ 8,041 | $ 5,384 |
Outstanding amount of receivables | 8,000 | |
Non Accrual [Member] | ||
Accounts Receivables [Line Items] | ||
Customer trade receivables | $ 300 | 300 |
Payment period of term loan | Revolving lines of credit and/or installment plans under which the payment terms exceed one year. | |
Outstanding amount of receivables | $ 5,000 | $ 4,100 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Continuity of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Receivables [Abstract] | |||
Beginning balance | $ 2,259 | $ 1,806 | $ 2,109 |
Additional provision recorded | 190 | 613 | |
Reduction in provision recorded | (7) | ||
Net write-offs | (294) | (160) | (296) |
Ending balance | $ 2,155 | $ 2,259 | $ 1,806 |
Inventories - Summary of Invent
Inventories - Summary of Inventories, Net of Obsolescence Reserve (Detail) - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,301 | $ 5,587 |
Work in progress | 95 | 84 |
Retail inventories and manufactured finished goods | 133,443 | 130,068 |
Total inventory | $ 137,839 | $ 135,739 |
Inventories - Continuity of Obs
Inventories - Continuity of Obsolescence Reserve for Inventory (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Inventory Disclosure [Abstract] | |||
Beginning balance | $ 2,746 | $ 2,514 | $ 3,557 |
Additional charges | 626 | 1,545 | 1,214 |
Deductions | (1,228) | (1,313) | (2,257) |
Ending balance | $ 2,144 | $ 2,746 | $ 2,514 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 80,517 | $ 86,837 |
Accumulated depreciation | (51,098) | (58,293) |
Property and equipment, Net | 29,419 | 28,544 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 4,909 | 5,178 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,274 | 7,664 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 36,550 | 41,153 |
Accumulated depreciation | (8,400) | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 1,933 | 2,083 |
Molds [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 838 | 934 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 9,858 | 9,914 |
Software and Electronic Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 19,155 | $ 19,911 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and plant under capital lease arrangement, cost | $ 80,517 | $ 86,837 |
Gross fixed assets write down | 51,098 | 58,293 |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant under capital lease arrangement, cost | 10,400 | 18,800 |
Property and plant under capital lease arrangement, net book value | 12,100 | 10,600 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant under capital lease arrangement, cost | 36,550 | $ 41,153 |
Gross fixed assets write down | $ 8,400 |
Sale of Assets - Additional Inf
Sale of Assets - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 04, 2015 | Mar. 26, 2016 | Mar. 28, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gross proceeds from sale of assets | $ 4,300 | ||
Amount of inventory included in sale of assets | $ 137,839 | $ 135,739 | |
Rideau [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Amount of inventory included in sale of assets | 800 | ||
Gain on disposal of assets | 3,200 | ||
Royalty receivables, First year | 4,500 | ||
Royalty receivables, Second year | 4,500 | ||
Royalty receivables, Third year | 4,500 | ||
Royalty receivables, Thereafter | $ 2,000 |
Bank Indebtedness - Additional
Bank Indebtedness - Additional Information (Detail) | Jul. 31, 2015USD ($)Installment | Nov. 30, 2015USD ($) | Nov. 30, 2015CAD | Mar. 26, 2016USD ($) | Mar. 26, 2014USD ($) | Mar. 26, 2014CAD | Jun. 30, 2015USD ($) | Mar. 28, 2015USD ($) | Feb. 10, 2014USD ($) | Jan. 20, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||||||||
Bank indebtedness | $ 63,209,000 | $ 64,347,000 | ||||||||
Senior secured revolving credit facility, excess availability | 16,200,000 | $ 12,900,000 | ||||||||
Number of installments | Installment | 2 | |||||||||
Senior secured revolving credit facility reserve | 8,000,000 | |||||||||
Supplemental availability reserve | 2,500,000 | |||||||||
Senior secured revolving credit facility, increase or decrease | 13,000 | |||||||||
Senior secured revolving credit facility, seasonal availability block | $ 5,000,000 | $ 12,500,000 | ||||||||
Minimum excess availability | $ 30,000,000 | |||||||||
Mortgage on moveable property (general) under the Civil Code (Quebec) | $ 188,395,000 | CAD 250,000,000 | ||||||||
Investissement Quebec [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Reduction of monthly capital requirements | $ 1,500,000 | CAD 2,000,000 | ||||||||
Minimum capital ratio required | 1.15 | |||||||||
Senior Secured Term Loan [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Senior secured credit facility | $ 35,500,000 | $ 33,000,000 | ||||||||
Debt Instrument Tranche One [Member] | Senior Secured Term Loan [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Senior secured credit facility | $ 2,500,000 | |||||||||
Libor plus interest | 9.75% | |||||||||
Maximum [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Aggregate dividend payment | 33.00% | |||||||||
Fixed charge coverage ratio | 1.30 | |||||||||
Minimum [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Fixed charge coverage ratio | 1 | |||||||||
Minimum [Member] | Investissement Quebec [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Adjusted long-term debt to adjusted net assets ratio | 2.5 |
Bank Indebtedness - Summary of
Bank Indebtedness - Summary of Company's Senior Credit Facility (Detail) - Senior Secured Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing outstanding during the year | $ 78,137 | $ 86,450 |
Average outstanding balance during the year | $ 68,205 | $ 73,207 |
Weighted average interest rate for the year | 3.20% | 3.30% |
Effective interest rate at year-end | 3.30% | 3.20% |
Long-term debt - Summary of Lon
Long-term debt - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt and Capital lease obligations | $ 53,174 | $ 56,784 |
Long-term debt and Capital lease obligations | 53,174 | 56,784 |
Current portion of long-term debt | 5,670 | 4,745 |
Long-term debt | 47,504 | 52,039 |
Capital Leasing Arrangements [Member] | Land and Building [Member] | ||
Debt Instrument [Line Items] | ||
Obligation under capital leases | 9,141 | 10,211 |
Term Loan from Investissement Quebec Prime Plus Seven Percent [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,826 | 3,643 |
Term Loan from Investissement Quebec Prime Plus Five Point Five Percent [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,355 | 3,478 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 33,000 | 33,000 |
Term Loan Facility Repaid in May 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,250 | |
Secured Debt [Member] | Furniture and Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Obligation under capital leases | 1,719 | 3,362 |
Cash Contribution [Member] | Montrovest BV [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,500 | 1,500 |
Term Loan from Investissement Quebec Prime Plus Ten Percent [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,383 | $ 1,590 |
Long-term debt - Summary of L55
Long-term debt - Summary of Long Term Debt (Parenthetical) (Detail) | Jul. 31, 2015Installment | Mar. 26, 2016USD ($)Installment | Mar. 26, 2016CADInstallment | Mar. 28, 2015USD ($)Installment | Mar. 28, 2015CADInstallment | Mar. 26, 2016CAD | Mar. 28, 2015CAD |
Debt Instrument [Line Items] | |||||||
Number of installments | Installment | 2 | ||||||
Capital Leasing Arrangements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Interest Rate Stated Percentage Rate Range Minimum | 5.80% | 5.80% | 5.80% | 5.80% | |||
Debt Instrument Interest Rate Stated Percentage Rate Range Maximum | 14.90% | 14.90% | 14.90% | 14.90% | |||
Term Loan from Investissement Quebec Prime Plus Seven Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 2,826,000 | $ 3,643,000 | |||||
Annual rate of prime plus | 7.00% | 7.00% | 7.00% | 7.00% | |||
Number of installments | Installment | 60 | 60 | 60 | 60 | |||
Capital repayments | $ 62,798 | CAD 83,333 | $ 62,798 | CAD 83,333 | |||
Balance of term loan | CAD | CAD 3,700,000 | CAD 4,600,000 | |||||
Term Loan from Investissement Quebec Prime Plus Five Point Five Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 2,355,000 | $ 3,478,000 | |||||
Annual rate of prime plus | 5.50% | 5.50% | 5.50% | 5.50% | |||
Number of installments | Installment | 48 | 48 | 48 | 48 | |||
Capital repayments | $ 156,995 | CAD 208,333 | $ 156,995 | CAD 208,333 | |||
Balance of term loan | CAD | CAD 3,100,000 | CAD 4,400,000 | |||||
Land and Building [Member] | Capital Leasing Arrangements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Sale Leaseback transaction implicit annual interest | 10.74% | 10.74% | 10.74% | 10.74% | |||
Capital lease period | 20 years | 20 years | 20 years | 20 years | |||
Repayments Of Debt And Capital Lease Obligations | $ 139,063 | CAD 184,537 | $ 139,063 | CAD 184,537 | |||
Outstanding amount of repayment | CAD | CAD 12,100,000 | CAD 12,800,000 | |||||
Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 33,000,000 | $ 33,000,000 | |||||
Term Loan Facility [Member] | Senior Subordinated Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility Repayment Date | Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2018 | Aug. 31, 2018 | |||
Term Loan Facility [Member] | LIBOR Plus 9.75% [Member] | Senior Subordinated Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt interest rate | 9.75% | 9.75% | 9.75% | 9.75% | |||
Long-term debt | $ 28,000,000 | $ 28,000,000 | |||||
Interest rate description | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | |||
Term Loan Facility [Member] | LIBOR Plus 7.25% [Member] | Senior Subordinated Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt interest rate | 7.25% | 7.25% | 7.25% | 7.25% | |||
Long-term debt | $ 5,000,000 | $ 5,000,000 | |||||
Interest rate description | LIBOR plus 7.25% | LIBOR plus 7.25% | LIBOR plus 7.25% | LIBOR plus 7.25% | |||
Term Loan Facility Repaid in May 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,250,000 | ||||||
Term Loan Facility Repaid in May 2016 [Member] | Senior Subordinated Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility Repayment Date | May 31, 2016 | May 31, 2016 | May 31, 2016 | May 31, 2016 | |||
Term Loan Facility Repaid in May 2016 [Member] | LIBOR Plus 9.75% [Member] | Senior Subordinated Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt interest rate | 9.75% | 9.75% | 9.75% | 9.75% | |||
Interest rate description | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | LIBOR plus 9.75% | |||
Cash Contribution [Member] | Montrovest BV [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,500,000 | $ 1,500,000 | |||||
Interest on Cash advances | 11.00% | 11.00% | 11.00% | 11.00% | |||
Term Loan from Investissement Quebec Prime Plus Ten Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,383,000 | $ 1,590,000 | |||||
Annual rate of prime plus | 10.00% | 10.00% | 10.00% | 10.00% | |||
Capital repayment period | 48 months | 48 months | 48 months | 48 months | |||
Periodic principal payment due | $ 31,399 | CAD 41,667 | $ 31,399 | CAD 41,667 | |||
Outstanding amount of repayment | CAD | CAD 1,800,000 | CAD 2,000,000 |
Long-term debt - Summary of Fut
Long-term debt - Summary of Future Minimum Lease Payments for Capital Leases (Detail) $ in Thousands | Mar. 26, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 2,967 |
2,018 | 2,180 |
2,019 | 1,698 |
2,020 | 1,680 |
2,021 | 6,171 |
Thereafter | 0 |
Total minimum lease payments | 14,696 |
Less imputed interest | 3,836 |
Total | $ 10,860 |
Long-term debt - Summary of Pri
Long-term debt - Summary of Principal Payment on Long Term Debt Including Obligation Under Capital Lease (Detail) - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 5,670 | |
2,018 | 3,580 | |
2,019 | 35,049 | |
2,020 | 1,637 | |
2,021 | 5,738 | |
Thereafter | 1,500 | |
Long-term debt and Capital lease obligations | $ 53,174 | $ 56,784 |
Long-term debt - Additional Inf
Long-term debt - Additional Information (Detail) CAD in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 26, 2016USD ($) | Mar. 26, 2016CAD | Dec. 11, 2015USD ($) | Dec. 11, 2015CAD | Mar. 28, 2015USD ($) | |
Debt Disclosure [Abstract] | |||||
Outstanding letters of credit | $ 1 | $ 1 | |||
Lease period | 20 years | ||||
Annual rent rate | $ 1.7 | CAD 2.2 | $ 1.5 | CAD 2 | |
Increase in percentage of annual rent rate | 10.00% | 10.00% | |||
Condition for lease agreement | The Company has four options to renew and extend the term of the lease for four further terms of five years each, except for the last option which is five years less eleven days, terminating on November 30, 2040. Subject to specific terms and conditions, the Company also has two options to purchase the premises, which may be exercised no later than six months prior to the end of the fifteenth year of the term of the lease and the end of the twentieth year of the term of the lease, respectively. |
Benefit Plans and Stock-Based59
Benefit Plans and Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 666,162 | 441,162 | 664,585 | 624,618 |
Share-based payment arrangements | $ 0 | $ 0 | $ 0 | |
Outstanding warrants | 382,693 | |||
Weighted average exercise price | $ 3.42 | |||
Warrant expiry date | Aug. 20, 2022 | |||
Maximum percentage of CO's total earnings before tax for three years | 10.00% | |||
Target incentive compensation level for the first three year cycle | $ 2,067,000 | |||
Percentage of total payout capped | 200.00% | |||
Payment portion of LTCIP value at the end of first three year | 0.33 | |||
Payment portion of LTCIP value thereafter | 0.33 | |||
Share Based Compensation Payout Ratio Under Long Term Cash Incentive Plan | 0.33 | |||
Percentage of amount payable at the end of three year | 50.00% | |||
Percentage Of Remaining Amount Payable One Year Thereafter | 50.00% | |||
Amounts earned under CEO long-term cash incentive Plan | $ 0 | |||
Class A Voting Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of outstanding options | 0 | |||
Unrecognized compensation, non-vested portion of stock option | 144,000 | |||
Total compensation cost for recognized expenses | $ 109,000 | $ 76,000 | $ 143,000 | |
Amended Birks Employee Stock Option Plan [Member] | Class A Voting Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price | $ 1.05 | |||
Options granted | 6,162 | 6,162 | 6,454 | |
Compensation expense | $ 0 | $ 0 | $ 0 | |
Stock Compensation Plan [Member] | Class A Voting Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock option description | Birks ESOP | |||
Combined Equity Award Plans [Member] | Class A Voting Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized issuance of shares | 1,304,025 | |||
Mayors Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 627 | 926 | 3,836 | 9,081 |
Compensation expense | $ 0 | $ 0 | $ 0 | |
Options outstanding, Weighted average remaining life (years) | 4 years | |||
Employee Stock Purchase Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional shares to be issued under this plan | No additional shares will be issued under this plan. | |||
Additional shares issued | 0 | 0 | 0 | |
Employee Stock Purchase Plans [Member] | Class A Voting Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized issuance of shares | 100,000 | |||
Common stock purchase percent | 85.00% | |||
Outstanding shares | 99,995 | |||
Profit Sharing 401 K Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of employee contribution | 25.00% | |||
Percentage of employee compensation | 4.00% | |||
Company matching contributions after exercise of its right to cancel future matching contributions | $ 0 | $ 0 | $ 0 | |
Long Term Incentive Plan [Member] | Class A Voting Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized issuance of shares | 900,000 | |||
Long term incentive plan stock appreciation rights, weighted average exercise price | $ 1.45 | |||
Options outstanding | 660,000 | |||
Stock options issued | 235,000 | 50,000 | ||
Vesting period | 3 years | |||
Exercise price | $ 0.78 | $ 1.94 | ||
Expiration period | 10 years | |||
Weighted Average Grant Date Fair Value | $ 0.69 | $ 1.71 | ||
Dividend yield | 0.00% | |||
Expected volatility | 95.30% | 94.80% | ||
Risk free interest rate | 2.30% | 2.04% | ||
Weighted average expected term | 10 years | |||
Long Term Incentive Plan [Member] | Stock Appreciation Rights [Member] | Class A Voting Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock appreciation rights granted | 154,990 |
Benefit Plans and Stock-Based60
Benefit Plans and Stock-Based Compensation - Summary of Activity of Stock Option Plans and Arrangements (Detail) - $ / shares | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding Beginning balance | 441,162 | 664,585 | 624,618 |
Granted | 235,000 | 50,000 | 165,000 |
Exercised | (111,372) | (74,813) | |
Expired | (15,000) | ||
Forfeited | (10,000) | (147,051) | (50,220) |
Outstanding Ending balance | 666,162 | 441,162 | 664,585 |
Outstanding Beginning balance | $ 1.15 | $ 1.21 | $ 1.18 |
Granted | 0.78 | 1.94 | 1.16 |
Exercised | 1.04 | 1 | |
Expired | 7.73 | ||
Forfeited | 1.10 | 1.10 | 1.07 |
Outstanding Ending balance | $ 1.02 | $ 1.15 | $ 1.21 |
Benefit Plans and Stock-Based61
Benefit Plans and Stock-Based Compensation - Summary of Status of Stock Options (Detail) - $ / shares | 12 Months Ended | |||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Weighted average exercise price | $ 1.02 | $ 1.15 | $ 1.21 | $ 1.18 |
Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | 0.78 | |||
Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | 0.84 | |||
Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | 0.89 | |||
Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Lower limit | 1.04 | |||
Exercise price, Upper limit | 1.05 | |||
Range Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Lower limit | 1.25 | |||
Exercise price, Upper limit | 1.66 | |||
Range Six [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price, Upper limit | $ 1.94 | |||
Options Outstanding [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 666,162 | |||
Options outstanding, Weighted average remaining life (years) | 7 years 7 months 6 days | |||
Options outstanding, Weighted average exercise price | $ 1.02 | |||
Options Outstanding [Member] | Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 235,000 | |||
Options outstanding, Weighted average remaining life (years) | 9 years 6 months | |||
Options outstanding, Weighted average exercise price | $ 0.78 | |||
Options Outstanding [Member] | Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 100,000 | |||
Options outstanding, Weighted average remaining life (years) | 7 years 1 month 6 days | |||
Options outstanding, Weighted average exercise price | $ 0.84 | |||
Options Outstanding [Member] | Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 55,000 | |||
Options outstanding, Weighted average remaining life (years) | 6 years 7 months 6 days | |||
Options outstanding, Weighted average exercise price | $ 0.89 | |||
Options Outstanding [Member] | Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 156,162 | |||
Options outstanding, Weighted average remaining life (years) | 5 years 8 months 12 days | |||
Options outstanding, Weighted average exercise price | $ 1.04 | |||
Options Outstanding [Member] | Range Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 70,000 | |||
Options outstanding, Weighted average remaining life (years) | 6 years 2 months 12 days | |||
Options outstanding, Weighted average exercise price | $ 1.48 | |||
Options Outstanding [Member] | Range Six [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Number outstanding | 50,000 | |||
Options outstanding, Weighted average remaining life (years) | 8 years 9 months 18 days | |||
Options outstanding, Weighted average exercise price | $ 1.94 | |||
Options Exercisable [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 351,160 | |||
Options exercisable, Weighted average exercise price | $ 1.09 | |||
Options Exercisable [Member] | Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 66,666 | |||
Options exercisable, Weighted average exercise price | $ 0.84 | |||
Options Exercisable [Member] | Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 55,000 | |||
Options exercisable, Weighted average exercise price | $ 0.89 | |||
Options Exercisable [Member] | Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 156,162 | |||
Options exercisable, Weighted average exercise price | $ 1.04 | |||
Options Exercisable [Member] | Range Five [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 56,666 | |||
Options exercisable, Weighted average exercise price | $ 1.44 | |||
Options Exercisable [Member] | Range Six [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercisable, Number exercisable | 16,666 | |||
Options exercisable, Weighted average exercise price | $ 1.94 |
Benefit Plans and Stock-Based62
Benefit Plans and Stock-Based Compensation - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding Beginning balance | 441,162 | 664,585 | 624,618 |
Outstanding Ending balance | 666,162 | 441,162 | 664,585 |
Outstanding Beginning balance | $ 1.15 | $ 1.21 | $ 1.18 |
Outstanding Ending balance | $ 1.02 | $ 1.15 | $ 1.21 |
Mayors Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding Beginning balance | 926 | 3,836 | 9,081 |
Expired | (299) | (2,910) | (5,245) |
Outstanding Ending balance | 627 | 926 | 3,836 |
Outstanding Beginning balance | $ 1.05 | $ 5.19 | $ 7.18 |
Expired | 1.05 | 6.51 | 8.63 |
Outstanding Ending balance | $ 1.05 | $ 1.05 | $ 5.19 |
Benefit Plans and Stock-Based63
Benefit Plans and Stock-Based Compensation - Summary of Stock Option Plans (Detail) - $ / shares | 12 Months Ended | |||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding | 666,162 | 441,162 | 664,585 | 624,618 |
Options outstanding and exercisable Weighted average exercise price | $ 1.02 | $ 1.15 | $ 1.21 | $ 1.18 |
Mayors Stock Option Plan [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding | 627 | 926 | 3,836 | 9,081 |
Options outstanding and exercisable Weighted average remaining life (years) | 4 years | |||
Options outstanding and exercisable Weighted average exercise price | $ 1.05 | $ 1.05 | $ 5.19 | $ 7.18 |
Mayors Stock Option Plan [Member] | Exercise Prices ($ 1.05) [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise price, Upper limit | $ 1.05 | |||
Number outstanding | 627 | |||
Options outstanding and exercisable Weighted average remaining life (years) | 4 years 1 month 6 days | |||
Options outstanding and exercisable Weighted average exercise price | $ 1.05 |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) | 12 Months Ended | |||
Mar. 26, 2016USD ($) | Mar. 26, 2016CAD | Mar. 28, 2015USD ($) | Mar. 29, 2014USD ($) | |
Tax Credit Carryforward [Line Items] | ||||
Accrued interest or penalties related to uncertain tax positions | $ 0 | |||
Non cash valuation allowance | 57,285,000 | $ 58,798,000 | ||
Current tax payable | 35,000 | $ 0 | $ 18,000 | |
Alternative Minimum Tax Credit [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Investment tax credits | 1,200,000 | |||
Foreign Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal non capital losses | $ 100,600,000 | |||
Federal net operating loss carry forwards expiration Dates | Beginning in fiscal 2020 through fiscal 2034 | |||
Domestic Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal non capital losses | $ 16,000,000 | CAD 21,200,000 | ||
Domestic Tax Authority [Member] | Investment Tax Credit Carryforward [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Investment tax credits | $ 196,000 | CAD 260,000 | ||
Expire date | Between 2022 and 2035. | |||
Foreign Country Section Three Eight Two Limitation [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Pre-acquisition net operating loss | $ 35,300,000 | |||
Pre-acquisition net operating loss limited | 953,000 | |||
State and Local Jurisdiction [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Federal non capital losses | $ 91,100,000 | |||
Federal net operating loss carry forwards expiration Dates | Beginning in fiscal 2018 through fiscal 2034 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Mar. 26, 2016 | Mar. 28, 2015 |
Deferred tax assets: | ||
Loss and tax credit carry forwards | $ 39,710 | $ 42,619 |
Difference between book and tax basis of property and equipment | 2,731 | 2,513 |
Interest expense limitations carry forward | 10,697 | 9,069 |
Inventory allowances | 417 | 529 |
Other reserves not currently deductible | 807 | 850 |
Capital lease obligation | 2,431 | 2,696 |
Expenses not currently deductible | 667 | 378 |
Other | (175) | 144 |
Net deferred tax asset before valuation allowance | 57,285 | 58,798 |
Valuation allowance | (57,285) | (58,798) |
Net deferred tax asset | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
Mar. 28, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits at the beginning of the year | $ 0 |
Gross increase - tax position in current period | 89 |
Applied against certain element of deferred tax assets | (89) |
Unrecognized tax benefits at the end of the year | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 50 | $ 77 | $ 183 |
Deferred | 1,591 | (2,636) | (1,525) |
Valuation allowance | (1,591) | $ 2,559 | 1,360 |
Income tax expense | $ 50 | $ 18 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | |||
Canadian statutory rate | 26.60% | 26.40% | 26.40% |
Rate differential for U.S. operations | 6.50% | 5.10% | 2.00% |
Adjustment to valuation allowance | 3.20% | (30.70%) | (26.80%) |
Utilization of unrecognized losses and other tax attributes | (32.20%) | 0.00% | 0.00% |
Permanent differences and other | (3.20%) | (0.80%) | (2.10%) |
Total | 0.90% | 0.00% | (0.50%) |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | 12 Months Ended | |
Mar. 26, 2016Class$ / shares | Mar. 28, 2015$ / shares | |
Class of Stock [Line Items] | ||
Preferred shares par value | $ 0 | $ 0 |
Number of classes of common stock outstanding | Class | 2 | |
Class A Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock voting rights per share | $ 1 | |
Class B Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock voting rights per share | $ 10 |
Capital Stock - Summary of Comm
Capital Stock - Summary of Common Stock Outstanding (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | ||
Class of Stock [Line Items] | |||
Beginning Balance, Shares | 17,849,509 | ||
Exercise of stock options, Shares | 111,372 | 74,813 | |
Ending Balance, Shares | 17,960,881 | 17,849,509 | |
Balance as of beginning balance | $ 69,475 | ||
Exercise of stock options | 116 | $ 74 | |
Balance as of ending balance | $ 69,601 | $ 69,475 | |
Class A Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Beginning Balance, Shares | 10,131,539 | ||
Exercise of stock options, Shares | 111,372 | ||
Ending Balance, Shares | 10,242,911 | 10,131,539 | |
Balance as of beginning balance | $ 30,862 | ||
Exercise of stock options | 126 | ||
Balance as of ending balance | $ 30,988 | [1] | $ 30,862 |
Class B Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Beginning Balance, Shares | 7,717,970 | ||
Ending Balance, Shares | 7,717,970 | 7,717,970 | |
Balance as of beginning balance | $ 38,613 | ||
Balance as of ending balance | $ 38,613 | [1] | $ 38,613 |
[1] | unlimited shares authorized |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 26, 2016 | Mar. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance charge | $ 800 | $ 1,400 |
Restructuring charges | 754 | 2,604 |
Employee retention related charges | 600 | |
Loss on sublet of Tamarac facility included in restructuring charges | 500 | |
Commission costs associated with sublease agreement included in restructuring charges | $ 100 | |
Accounts Payable and Accrued Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Accounts payable and accrued liabilities related to restructuring charges | 300 | |
Payments for restructuring charges | $ 1,800 |
Commitments - Minimum Future Pa
Commitments - Minimum Future Payments Under Leases (Detail) $ in Thousands | Mar. 26, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 15,535 |
2,018 | 13,135 |
2,019 | 12,272 |
2,020 | 11,967 |
2,021 | 10,401 |
Thereafter | 45,057 |
Operating Leases, Future Minimum Payments Due, Total | $ 108,367 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 21.8 | $ 23.4 | $ 24.3 |
Contingent rent expense | $ 0.5 | $ 0.7 | $ 0.3 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Mar. 26, 2016 | Mar. 28, 2015 | |
Contingencies [Line Items] | |||
Guaranteed amount of private label credit card sales | $ 9,300,000 | $ 6,800,000 | |
Reserve associated with guaranteed credit card sales | $ 500,000 | $ 200,000 | |
Jewelry products purchased | $ 10,600,000 | ||
Minimum annual payments | $ 5,600,000 | ||
Purchase made to replenish jewelry products, Period of payment | 90 days | ||
Return of unsold Damiani products | $ 5,000,000 | ||
Renewed and Amended Distribution Agreement [Member] | |||
Contingencies [Line Items] | |||
Minimum annual payments | $ 1,000,000 | ||
Purchase made to replenish jewelry products, Period of payment | 60 days | ||
Exchangeable amount of unsold products permitted | $ 2,000,000 | ||
Return of unsold Damiani products | $ 4,000,000 | ||
Purchase [Member] | Prime Investments S.A. [Member] | Supplier Concentration Risk [Member] | |||
Contingencies [Line Items] | |||
Percentage of annualized cost basis | 45.00% |
Segmented Information - Additio
Segmented Information - Additional Information (Detail) | 12 Months Ended |
Mar. 26, 2016StoreSegmentLocation | |
Segment Information [Line Items] | |
Number of reportable segment | Segment | 2 |
Birks Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail stores | 27 |
Mayors Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail stores | 17 |
Rolex Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail stores | 1 |
Brinkhaus Brand [Member] | Retail Segment [Member] | |
Segment Information [Line Items] | |
Number of retail locations | Location | 2 |
Segmented Information - Schedul
Segmented Information - Schedule of Information Relating to Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Segment Reporting Information [Line Items] | |||
Sales to external customers | $ 285,826 | $ 301,637 | $ 281,165 |
Unadjusted gross profit | 112,714 | 123,518 | 119,873 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Inter-segment sales | 14,002 | 15,891 | 18,320 |
Retail Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Unadjusted gross profit | 110,023 | 118,128 | 114,210 |
Retail Segment [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to external customers | 281,940 | 293,146 | 270,630 |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Unadjusted gross profit | 2,691 | 5,390 | 5,663 |
Other Segments [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Inter-segment sales | 14,002 | 15,891 | 18,320 |
Other Segments [Member] | Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales to external customers | $ 3,886 | $ 8,491 | $ 10,535 |
Segmented Information - Sched77
Segmented Information - Schedule of Reconciliations of Segments Gross Profits and Certain Unallocated Costs to Consolidated Gross Profits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Segment Reporting [Abstract] | |||
Unadjusted gross profit | $ 112,714 | $ 123,518 | $ 119,873 |
Inventory provisions | (2,084) | (3,151) | (3,010) |
Other unallocated costs | (1,630) | (2,551) | (2,801) |
Adjustment of intercompany profit | 387 | (11) | 605 |
Gross profit | $ 109,387 | $ 117,805 | $ 114,667 |
Segmented Information - Sched78
Segmented Information - Schedule of Sales to External Customers and Long-Lived Assets by Geographical Areas (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | $ 285,826 | $ 301,637 | $ 281,165 |
Long-lived assets, total | 31,579 | 31,264 | 32,765 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | 128,651 | 143,384 | 146,277 |
Long-lived assets, total | 19,464 | 17,898 | 19,484 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | 157,175 | 158,253 | 134,888 |
Long-lived assets, total | 12,115 | 13,366 | 13,281 |
Jewelry and Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | 127,220 | 141,781 | 148,511 |
Timepieces [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales, total | $ 158,606 | $ 159,856 | $ 132,654 |
Related Party Transactions - Ba
Related Party Transactions - Balance Related to Related Parties (Detail) | 12 Months Ended | ||||
Mar. 26, 2016USD ($) | Mar. 28, 2015USD ($) | Mar. 29, 2014USD ($) | Feb. 28, 2015USD ($) | Feb. 28, 2015CAD | |
Related Party Transactions [Abstract] | |||||
Purchases of inventory from supplier related to shareholder | $ 503,000 | $ 189,000 | $ 0 | ||
Management fees to related parties | 155,000 | 238,000 | 188,000 | ||
Consultant fees to a related party | 173,000 | 175,000 | 155,000 | ||
Expense reimbursement to a related party | 201,000 | 241,000 | 237,000 | ||
Interest expense on cash advance received from controlling shareholder | 165,000 | 165,000 | 164,000 | ||
Wholesale distribution service payments to a related party | 1,000 | ||||
Accounts payable to supplier related to shareholder | 17,000 | ||||
Accounts payable to related parties | 38,000 | 447,000 | 57,000 | $ 60,000 | CAD 75,000 |
Interest payable on cash advance received from controlling shareholder | $ 25,000 | $ 136,000 | $ 13,000 |
Related party transactions - Ad
Related party transactions - Additional Information (Detail) | Nov. 17, 2015 | Jun. 08, 2011EUR (€) | Jun. 30, 2016 | Apr. 30, 2015 | Feb. 28, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2014CHF (SFr) | Aug. 31, 2013USD ($)$ / sharesshares | Aug. 31, 2012USD ($) | Jun. 30, 2011USD ($) | Apr. 30, 2011 | Jun. 30, 2009USD ($) | Jun. 30, 2009CAD | May 31, 2009USD ($) | Feb. 28, 2009USD ($) | Aug. 31, 2002 | Mar. 26, 2016USD ($) | Mar. 26, 2016EUR (€) | Mar. 28, 2015USD ($) | Mar. 28, 2015EUR (€) | Mar. 29, 2014USD ($) | Mar. 29, 2014EUR (€) | Mar. 30, 2013USD ($) | Feb. 28, 2015CAD |
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Legal fees incurred | $ 60,000 | $ 38,000 | $ 447,000 | $ 57,000 | CAD 75,000 | |||||||||||||||||||
Percentage of purchase price on cost | 45.00% | |||||||||||||||||||||||
Purchase price of diamonds | 503,000 | 189,000 | 0 | |||||||||||||||||||||
Related party expenses | 201,000 | 241,000 | 237,000 | |||||||||||||||||||||
Debentures converted to voting shares, value | $ 5,000,000 | |||||||||||||||||||||||
Annual interest rate of debentures | 6.00% | |||||||||||||||||||||||
Class A Common Stock [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Debentures converted to voting shares | shares | 2,941,085 | |||||||||||||||||||||||
Voting shares conversion price | $ / shares | $ 1.70 | |||||||||||||||||||||||
Scenario, Forecast [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Agreement additional renewal term | 1 year | |||||||||||||||||||||||
Montrovest BV [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Amount paid to related party | € 140,000 | 116,000 | € 105,000 | $ 178,000 | € 140,000 | 188,000 | € 140,000 | |||||||||||||||||
Notice days for non renewal | 60 days | |||||||||||||||||||||||
Agreement additional renewal term | 1 year | |||||||||||||||||||||||
Irrevocable letter of credit | 5,000,000 | |||||||||||||||||||||||
Agreement expiration date | Dec. 31, 2015 | |||||||||||||||||||||||
Cash received from related party | $ 3,000,000 | $ 2,000,000 | ||||||||||||||||||||||
Annual interest rate | 11.00% | 16.00% | 16.00% | |||||||||||||||||||||
Effective interest rate | 12.20% | 17.80% | ||||||||||||||||||||||
Fee as a percentage of outstanding principal amount | 7.00% | 7.00% | ||||||||||||||||||||||
Cash received from related party | $ 5,000,000 | |||||||||||||||||||||||
Transaction amount | 75,000 | |||||||||||||||||||||||
Partial repayment of cash advance | $ 3,500,000 | |||||||||||||||||||||||
Advances payable to related party | 1,500,000 | $ 1,500,000 | ||||||||||||||||||||||
Debentures converted to voting shares | shares | 2,828,634 | |||||||||||||||||||||||
Montrovest BV [Member] | Class A Common Stock [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Debentures converted to voting shares, value | $ 4,800,000 | |||||||||||||||||||||||
Montrovest BV [Member] | Minimum [Member] | Potential Transaction [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Net cash proceeds from an equity issuance | $ 5,000,000 | |||||||||||||||||||||||
Gestofi [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Amount paid to related party | 39,000 | € 35,000 | ||||||||||||||||||||||
Agreement additional renewal term | 1 year | 1 year | 1 year | 1 year | ||||||||||||||||||||
Agreement beginning date | Jan. 1, 2016 | Aug. 1, 2009 | Aug. 1, 2009 | |||||||||||||||||||||
Related party expenses | $ 12,500 | $ 13,310 | SFr 13,000 | $ 10,324 | CAD 13,700 | |||||||||||||||||||
Prime Investments S.A. [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Purchase price of diamonds | $ 500,000 | 200,000 | ||||||||||||||||||||||
Ownership percentage | 15.00% | |||||||||||||||||||||||
Regaluxe [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Amount paid to related party | $ 0 | 0 | 1,000 | |||||||||||||||||||||
Agreement additional renewal term | 1 year | 1 year | ||||||||||||||||||||||
Agreement expiration date | Mar. 30, 2013 | |||||||||||||||||||||||
Agreement beginning date | Apr. 1, 2011 | |||||||||||||||||||||||
Related party expenses | $ 201,000 | $ 241,000 | 237,000 | |||||||||||||||||||||
Related party agreement term | 1 year | |||||||||||||||||||||||
Discount factor | 3.50% | |||||||||||||||||||||||
Regaluxe [Member] | Maximum [Member] | ||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||
Related party expenses | $ 260,000 | $ 250,000 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 26, 2016 | Mar. 28, 2015 | Mar. 29, 2014 | |
Fair Value Disclosures [Abstract] | |||
Percentage of consolidated sale | 39.00% | 36.00% | 32.00% |
Bank indebtedness | $ 63,209 | $ 64,347 | |
Long-term debt bearing interest at variable rates | 40,800 | 41,700 | |
Fixed-rate long-term debt | 12,400 | 15,100 | |
Fair value of fixed long-term debt and other long-term liabilities | $ 12,900 | $ 15,500 |