On Thursday, U.S. brokerage firm B. Riley (RILY.O), opens new tab stated it was evaluating strategic options for certain of its companies, including a sale, pulling its shares down 14% in extended trade.
An evaluation and valuation services, retail, wholesale, and industrial solutions business is exploring choices. They stated the businesses were undervalued and could be worth more to a buyer.
In 2014, B. Riley purchased Great American Group, which it now reviews strategically. B. Riley's retail and appraisal operation has a $35 million book value, it stated.
It was announced in a separate statement that the company would inform the United States Securities and Exchange Commission (SEC) that it would be unable to file its annual report for the year that ended on December 31, 2023 by the required filing date due to delays in finalizing its financial statements.
In a separate statement announcing its preliminary unaudited results, the company said it would notify the SEC that it would not file its annual report for the year ended Dec. 31, 2023 due to financial statement delays.
The preliminary fourth-quarter loss rose to $2.32 per share from $2.08 per year earlier.
B. Riley's stake in Vitamin Shoppe-owner Franchise Group's 2023 management-led buyout has also drawn investor and media criticism.
Last Monday, it said an internal probe revealed no knowledge or involvement in Prophecy Asset Management malfeasance.
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