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