Finance
B. Riley Posts Loss and Cuts Payout Amid Questions on Key Client’s Role
- Shares tumble after company sees delay in annual report
- Firm studies options for possible sale of Great American unit
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B. Riley Financial Inc. posted a wider quarterly loss, halved its dividend and delayed filing its annual report, citing a review of transactions with a key client that have drawn attacks by short sellers. Shares of the boutique investment bank fell 15% in late trading.
The delay was due to the review by its board and outside counsel of its dealings with Brian Kahn, the former head of Franchise Group Inc., B. Riley said in a statement. The investment bank also retained Moelis & Co. to help assess strategic options such as a sale for its appraisal and asset-disposition businesses, formerly known as Great American Group.