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 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 (RILY) surged 21.8% pre-market following the company’s announcement of an independent investigation clearing it and its executives of any involvement in alleged misconduct concerning Brian Kahn. The findings corroborated an earlier internal review conducted by Sullivan & Cromwell. Amidst the ongoing probe, B. Riley also filed its financial results for the year ended December. Previously, the firm had secured an extension for its 2023 audited financial statements filing under its credit agreement with Nomura.
