B. Riley co-founder proposes buyout as investment bank faces mounting challenges By Reuters

(Reuters) – B Riley is navigating one of its most turbulent years due to the ill-fated investment in Vitamin Shoppe-owner Franchise Group (NASDAQ:) 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:

Eventos

Time

May 2023 B Riley backs a deal by

Franchise Group’s management

group to take the company

private. The group included

former CEO Brian Kahn.

August 2023 Take-private deal for Franchise

closed.

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.

January 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 (NYSE:) for a strategic review

of some businesses. Delays

annual report with SEC.

April 2024 Disclosed an external probe had

also cleared the bank’s

executives of any suspect

misconduct. Annual files

report.

May 2024 Delays quarterly

report with the SEC but files

it days later. Reports Q1 loss

due to unrealized investment

losses.

August 2024 Suspended 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.

August 2024 Co-founder and co-CEO Bryant

Riley reveals he has proposed

to buy the investment bank for

$7 per share.