B. Riley Suspends Dividend, Warns of Loss on FRG Investment (2)

B. Riley Financial Inc. suspended its dividend and warned of new losses as the firm wrote down a portion of its stake in Franchise Group Inc., a troubled US retail business. The company’s shares lost about half their value in New York trading.

The Los Angeles-based firm expects losses for the quarter ended June 30 to be between $435 million and $475 million, according to a statement Monday. The loss is fueled by a markdown of up to $370 million on B. Riley’s investment in Franchise Group, or FRG, an owner of retail chains where the bank is one ...