NEW YORK, Dec. 2, 2020 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ: RILY) ("B. Riley" or the "Company"),
a leading business advisory and financial services company, today
announced it has acquired significant interest in clothing brand,
Justice, through an investment in Bluestar Alliance, LLC's
("Bluestar") acquisition of the brand's assets from ascena retail
group, inc. ("ascena"). Bluestar owns the rights, title and
licenses of Justice – including its e-commerce business – free and
clear of Justice's prior liabilities as a result of a winning bid
in the auction of ascena's assets under Section 363 of the U.S.
Bankruptcy Code.
"This is an exciting investment which enhances our established
foothold in brand licensing investments and our continued
partnership with Bluestar. As a well-known brand that generated
over $1 billion in annual revenue in
2019, Justice represents an extremely compelling investment at an
attractive valuation," said Bryant
Riley, Chairman and Co-Chief Executive Officer of B. Riley
Financial. "We believe there's a significant opportunity to turn
the Justice brand into a robust licensing model in categories such
as girl's sportswear, swimwear, accessories and more, as well as
opportunities for global expansion, growing the e-commerce business
and adding additional license product categories."
This investment in Justice aligns with B. Riley's broader
investment strategy to generate recurring revenue for its platform.
The Company seeks to grow licensing revenue from its brand
holdings, in partnership with Bluestar Alliance, by leveraging its
extensive relationships and strategic partnerships in the retail
sector. B. Riley also intends to continue to pursue acquisitions of
consumer brands, intellectual property, trademarks and licenses,
and participate in select transactions as an equity owner.
B. Riley's other brand investments include bebe, Hurley,
Catherine Malandrino, English
Laundry, Joan Vass, Kensie, Limited
Too and Nanette Lepore.
About B. Riley Financial, Inc.
B. Riley Financial
(NASDAQ: RILY) provides collaborative financial services solutions
tailored to fit the capital raising, business, operational, and
financial advisory needs of its clients and partners. B. Riley
operates through several subsidiaries that offer a diverse range of
complementary end-to-end capabilities spanning investment banking
and institutional brokerage, private wealth and investment
management, corporate advisory, restructuring, due diligence,
forensic accounting and litigation support, appraisal and
valuation, and auction and liquidation services. Certain registered
affiliates of B. Riley originate and underwrite senior secured
loans for asset-rich companies. B. Riley also makes proprietary
investments in companies and assets with attractive return
profiles. For the latest Company news and developments, follow B.
Riley on
Twitter @BRileyFinancial and LinkedIn.
For more information about B. Riley, visit our website
at www.brileyfin.com.
Forward-Looking Statements
Statements 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 the date of this
press release. Factors that could cause such actual results to
differ materially from those contemplated or implied by such
forward-looking statements include, without limitation, the risks
associated with the unpredictable and ongoing impact of the
COVID-19 pandemic and other risks described from time to time in B.
Riley Financial, Inc.'s periodic filings with the SEC, including,
without limitation, the risks described in B. Riley Financial,
Inc.'s Annual Report on Form 10-K for the year ended December
31, 2019, and Quarterly Reports on Form 10-Q for the quarters
ended March 31, 2020, June 30, 2020 and September 30, 2020, under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations.". 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 B. Riley
Financial, Inc. undertakes no duty to update this information.
Contacts
Investor Relations
Brad Edwards
ir@brileyfin.com
Media Relations
Jo Anne
McCusker, Andrew Jennings
press@brileyfin.com
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SOURCE B. Riley Financial