B. Riley Financial’s stock plunged on Monday after the company announced a $120 million impairment related to its investments in Franchise Group, which filed for Chapter 11 bankruptcy. The company warned of potential losses related to Franchise Group earlier this year and faces further scrutiny from regulators due to its involvement with the retailer.
B. Riley Financial, Inc. (RILY) shares are experiencing a significant surge on Monday after the company announced the sale of its appraisal and valuations unit, Great American, to Oaktree Capital Management. The deal, valued at approximately $386 million, is expected to close in the fourth quarter of 2024 and could see B. Riley receive a combination of cash, preferred units, and common units in Great American Holdings, LLC.
B. Riley Financial (RILY) saw its stock price jump on Monday after announcing a strategic plan involving the sale of a majority stake in Great American Group and a debt financing plan for its brands portfolio. These initiatives aim to significantly reduce debt and strengthen the company’s financial position.
B. Riley Financial’s shares are experiencing a significant rise today due to reports that Oaktree Capital is in talks to acquire a majority stake in two of its business units. This potential deal, valued at around $380 million, could be announced as early as next week, but is still subject to change.
B. Riley Financial Inc. (RILY) stock has taken a significant hit this week, plummeting over 50% on Monday and continuing to decline on Tuesday. This comes after the company delayed its quarterly financial results due to an investigation by the U.S. Securities and Exchange Commission (SEC) into whether B. Riley properly disclosed risks associated with some of its assets. The SEC’s investigation, which includes scrutiny of B. Riley’s investment in Franchise Group Inc. (FRG), has fueled concerns about the company’s financial health and prompted harsh criticism from short sellers.
B. Riley Financial, a diversified financial services platform, has filed its Annual Report on Form 10-K for the fiscal year ended 2023. The report highlights the company’s continued strong performance, its commitment to clients and shareholders, and its strategic initiatives for the future.
Key highlights of the report include:
* Confirmation from an independent investigation that the company and its executives had no involvement in or knowledge of any misconduct concerning Mr. Kahn or any of his affiliates.
* Clarification regarding the company’s investment in Freedom VCM, addressing unsubstantiated claims about its role in the FRG take-private transaction.
* The company’s ongoing strategic review process for Great American Group, with significant interest expressed to date.
* The company’s intent to amend its Current Report on Form 8-K to include updated historical FRG financial statements and related pro forma financials.
B. Riley Financial is committed to delivering tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. The company believes that the information provided in its Annual Report demonstrates its strong financial foundation, commitment to transparency, and dedication to creating value for stakeholders.
