By Jaiveer Shekhawat
(Reuters) -U.S. brokerage firm B. Riley said on Thursday it was exploring strategic options for some of its businesses, which could include a potential sale, sending its shares plunging 14% in extended trading.
The company is seeking options for its appraisal and valuation services, retail, wholesale and industrial solutions businesses. It said the businesses were not appropriately valued by the market and could provide greater value to a potential acquirer.
The businesses, for which it has launched a strategic review, was collectively formerly known as Great American Group and was acquired by B. Riley in 2014 through a strategic combination.
The retail and appraisal business is currently carried on B. Riley's balance sheet at a book value of about $35 million, it said.
The company in a separate statement announcing its preliminary unaudited results also said it would inform the U.S. Securities and Exchange Commission (SEC) that it was unable to file its annual report for the year ended Dec. 31, 2023 by the required filing date due to delays in finalizing its financial statements.
The company's preliminary fourth-quarter loss widened to $2.32 per share compared with $2.08 per share a year earlier.
B. Riley has also been under investor and media scrutiny due to its investment in Vitamin Shoppe-owner Franchise Group (NASDAQ:FRG) when it was taken private by a management-led buyout in 2023.
It said last week an internal review found the company had no knowledge or involvement in alleged misconduct at Prophecy Asset Management.