The translation of the heading to English is: "Franchise Group Bankruptcy Drags B. Riley Financial Down.

The bankruptcy of Franchise Group has led to significant financial losses for B. Riley Financial and deeply affected co-founder Bryant Riley. According to his own statements, he feels a personal shock following the collapse of the company. Franchise Group, in which B. Riley acquired a stake of approximately 31 percent through a $2.8 billion acquisition in August 2023, filed for Chapter 11 bankruptcy last Sunday. A large portion of this stake was pledged to B. Riley's lenders, which further exacerbated the financial impact of the bankruptcy. The post-bankruptcy elimination of Franchise Group's shares results in an additional impairment charge of $120 million for B. Riley Financial. This occurs at a time when the company has already had to absorb previous write-downs of up to $370 million. As such, the challenges have increased once again following the ambitious acquisition, placing a noticeable strain on the Los Angeles-based company.