(Reuters) – B Riley is navigating one of its most turbulent years due to the ill-fated investment in Vitamin Shoppe-owner Franchise Group that has invited scrutiny from regulators and prompted investors to dump its stock.
B Riley’s co-founder and co-CEO, Bryant Riley, disclosed on Friday that he has proposed to buy the investment bank, in a dramatic end to a punishing week for its shares.
Here is a timeline of the key events surrounding the bank:
Event
Time
May 2023 B Riley backs a deal by
Franchise Group’s management
group to take the company
private. The group includes
former CEO Brian Kahn.
Aug. 2023 Take-private deal for Franchise
closes.
Nov. 2023 Bloomberg News reports Kahn was
one of the co-conspirators in a
fraud by Prophecy Asset
Management. Kahn has denied the
allegation.
Nov. 2023 B Riley reports net loss in
third quarter, compared with a
profit a year earlier, due to
unrealized investment losses in
its equities portfolio.
Nov. 2023 S&P Global downgrades Franchise
Group’s ratings, citing lower
profitability expectations.
Jan. 2024 Franchise Group appoints Andrew
Laurence as its new CEO.
Feb. 2024 B Riley says an internal review
found it had no involvement
with or knowledge of the
alleged misconduct concerning
Prophecy.
Feb. 2024 B Riley halves dividend, hires
Moelis for a strategic review
of some businesses. Delays
annual report with SEC.
April 2024 Discloses an external probe had
also cleared the bank’s
executives of any suspected
misconduct. Files annual
report.
May 2024 Delays quarterly
report with the SEC but files
it days later. Reports Q1 loss
due to unrealized investment
losses.
Aug. 2024 Suspends dividend.
Warns of losses between $14 and
$15 per share for Q2, compared
to a $1.55 per share profit
last year. Stock slumps 52%.
Bank delays quarterly report
for the third time in 2024.
Aug. 2024 Co-founder and co-CEO Bryant
Riley discloses he has proposed
to buy the investment bank for
$7 per share.
(Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Maju Samuel)
