Nov 1 (Reuters) - Investment bank B. Riley Financial ( RILY )

said on Friday it had agreed to sell a portion its

traditional wealth management business to Stifel in a

deal expected to fetch between $27 million and $35 million in

cash.

The deal could allay some investors concerns over B. Riley's

fortunes and allow it to tackle immediate challenges as it looks

to contain the hit from its exposure to Vitamin Shoppe-owner

Franchise Group.

"The past year has proved disruptive to our Wealth

Management business, with competitors taking advantage of the

noise surrounding our principal investments business," said

Co-CEO Bryant Riley in a statement.

The bank has been navigating heightened turmoil since

August, when it warned that its exposure to Franchise could

result in a writedown and losses for the second quarter ended

June 30.

It also postponed filing its quarterly report with

regulators, the third such instance this year, due to a hold-up

in finalizing the valuations of certain loans and investments.

Shares in the bank have declined nearly 72% so far this

year.

Under the terms of the deal with Stifel, B. Riley expects 40

to 50 advisors, along with the associated customer accounts, to

transition in early 2025.

The accounts represent total assets under management (AUM)

of around $3.5 billion to $4.5 billion as of Sept. 30, the bank

said.

It expects the deal to close in the second quarter of next

year.