Finance

B. Riley Suspends Dividend, Warns of Loss on FRG Investment

Firm cites writedown on investment in Franchise Group
Company also discloses probe by SEC into dealings with Kahn

B. Riley Faces Wider US Probe on Risk Disclosures, Kahn Ties

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By Donal Griffin

August 12, 2024 at 11:24 AM UTC

Updated on

August 12, 2024 at 2:10 PM UTC

This article is for subscribers only.

B. Riley Financial Inc. suspended its dividend and warned of new losses as the firm wrote down a portion of its stake in Franchise Group Inc., a troubled US retail business. The company’s shares lost about half their value in New York trading.

The Los Angeles-based firm expects losses for the quarter ended June 30 to be between $435 million and $475 million, according to a statement Monday. The loss is fueled by a markdown of up to $370 million on B. Riley’s investment in Franchise Group, or FRG, an owner of retail chains where the bank is one of the biggest shareholders.