B. Riley's President Kenny Young Resigns
Date
9/23/2024 7:00:23 PM
(MENAFN- Live Mint) Sept 23 (Reuters) - B. Riley financial said on Monday that its president Kenny Young resigned from his post, as well as from certain other roles in the investment bank's units, on Sept. 20.
Young will stay on as a consultant to the bank for one year, the company said in a filing.
In August, the bank's stock came under pressure after it flagged a loss between $435 million and $475 million for the quarter ended June 30, in contrast to a profit recorded in the same period the previous year, according to a preliminary report by the bank.
The potential losses, during the quarter, include a markdown of $330 million to $370 million related to its investment in Vitamin Shoppe-owner Franchise Group (FRG).
B. Riley had participated in the management-led buyout of FRG in 2023, a deal that has subsequently come under fire from regulators and the company's shareholders.
The stock took a further beating after B. Riley said it would not be able to file its report for the quarter ended June 30 with the U.S Securities and Exchange Commission by the due date.
The investment bank's stock has lost nearly 73% of its value since the start of 2024.
The bank is also reviewing a potential take-private bid from its co-founder and co-CEO Bryant Riley.
B. Riley was approached by Stifel Financial to sell its wealth management business for more than $100 million, Reuters reported last week, citing sources.
(Reporting by Juveria Tabassum and Pritam Biswas in Bengaluru; Editing by Mohammed Safi Shamsi)
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