LOS
ANGELES, Oct. 29, 2024 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"), a
diversified financial services company, today announced it and its
subsidiary bebe stores, inc. ("bebe") have completed a transaction
for their brand assets yielding approximately $236 million in cash proceeds to B. Riley.
At the closing of the transaction, B. Riley transferred and
contributed its interests in the assets and intellectual property
related to the licenses of several brands, including Hurley,
Justice, Scotch & Soda, Catherine
Malandrino, English Laundry, Joan
Vass, Kensie, Limited Too and Nanette Lepore to a securitization vehicle,
receiving approximately $189 million
in net proceeds in connection with the financing transaction. bebe
sold its interests in the assets and intellectual property related
to the licenses of the bebe and Brookstone brands for approximately
$47 million in net cash proceeds also
at the closing.
B. Riley acquired the portfolio of brands (excluding bebe and
Brookstone) for approximately $222
million and received $179
million in distributions during its ownership. The Company
plans on utilizing the proceeds from this transaction to pay down
outstanding senior secured debt and deleverage its balance
sheet.
Bryant Riley, Chairman and
Co-Chief Executive Officer of B. Riley Financial said, "We
appreciate the partnership we have had with the Bluestar Alliance
team over the past several years. Joseph
Gabbay and Ralph Gindi are
incredible operators, and have done a tremendous job re-positioning
these brands."
Mr. Riley continued, "With the completion of this transaction
and the expected sale of a majority stake in Great American Group
in late November, we are moving from a period of asset monetization
to a renewed focus on growth in our core financial services
operating businesses. There remains a huge opportunity in the
small- and mid-cap markets, and we believe B. Riley is uniquely
positioned to meet this demand. We look forward to providing
investors with an update on our plans on our next quarterly
earnings call."
Advisors
Sullivan & Cromwell LLP served as legal
advisor to B. Riley.
About B. Riley Financial
B. Riley Financial is a
diversified financial services company that delivers tailored
solutions to meet the strategic, operational, and capital needs of
its clients and partners. B. Riley leverages cross-platform
expertise to provide clients with full service, collaborative
solutions at every stage of the business life cycle. Through its
affiliated subsidiaries, B. Riley provides end-to-end financial
services across investment banking, institutional brokerage,
private wealth and investment management, financial consulting,
corporate restructuring, operations management, risk and
compliance, due diligence, forensic accounting, litigation support,
appraisal and valuation, auction, and liquidation services. B.
Riley opportunistically invests to benefit its shareholders, and
certain affiliates originate and underwrite senior secured loans
for asset-rich companies. B. Riley refers to B. Riley Financial,
Inc. and/or one or more of its subsidiaries or affiliates. For more
information, please visit www.brileyfin.com.
Forward-Looking Statements
Statements made in this press release that are not descriptions of
historical facts are forward-looking statements that are based on
management's current expectations and assumptions and are subject
to risks and uncertainties. If such risks or uncertainties
materialize or such assumptions prove incorrect, our business,
operating results, financial condition, and stock price could be
materially negatively affected. You should not place undue reliance
on such forward-looking statements, which are based on the
information currently available to us and speak only as of today's
date. All statements other than statements of historical fact are
forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the Company's performance or achievements to be
materially different from any expected future results, performance,
or achievements. Forward-looking statements speak only as of the
date they are made and the Company assumes no duty to update
forward-looking statements, except as required by law. Actual
future results, performance or achievements may differ materially
from historical results or those anticipated depending on a variety
of factors, some of which are beyond the control of the Company,
including, but not limited to, the risks described from time to
time in the Company's periodic filings with the SEC, including,
without limitation, the risks described in the Company's 2023
Annual Report on Form 10-K and in B. Riley Financial's Quarterly
Reports on Form 10-Q for the period ended March 31, 2024 under the captions "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" (as applicable). These factors should be
considered carefully, and readers are cautioned not to place undue
reliance on such forward-looking statements. All information is
current as of the date this press release is issued, and the
Company undertakes no duty to update this information.
Contacts
Investors
ir@brileyfin.com
Media
press@brileyfin.com
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SOURCE B. Riley Financial