07:58 AM EST, 11/04/2024 (MT Newswires) -- B. Riley Financial-backed (RILY) Franchise Group on Sunday began voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware, B. Riley said in a filing with the US Securities and Exchange Commission.

On Monday, B. Riley said it concluded that it must record an additional impairment related to its equity investment in Freedom VCM Holdings, the parent corporation of Franchise Group, as well as its loan receivable from Vintage Capital Management, which is primarily secured by a first priority perfected security interest in Freedom VCM equity interests owned by Brian Kahn and his spouse.

B. Riley said it expects the non-cash impairments of its equity investment and loan receivable to be about $120 million in total.

B. Riley shares were about 8% lower in premarket trading.

Price: 5.20, Change: -0.50, Percent Change: -8.77