BRC Group Holdings

Corporate brand

Los Angeles-based financial services group focused on investment banking, capital markets, wealth management, restructuring, and liquidation services.

Last updated August 25, 2026

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Overview

BRC Group Holdings is an American financial services group headquartered in Los Angeles, California, and associated with the B. Riley name. Its activities have centered on investment banking and research for small and mid-sized companies, brokerage and wealth-management services, financial consulting, restructuring advice, retail liquidation, auctions, communications, and ownership or investment in consumer brands. The business began in 1997 when Bryant Riley established B. Riley & Co. as a stock-picking and research firm serving institutional investors. Its original focus was research on smaller public companies rather than a broad investment-bank model. The company expanded into investment banking in 2003 through the acquisition of Friend & Co., a boutique investment bank where Riley had previously worked. It subsequently pursued a series of acquisitions intended to broaden its brokerage, research, advisory, restructuring, liquidation, and wealth-management capabilities. Important additions included Caris & Co. in 2012, Great American Group in 2014, FBR & Co. and Wunderlich Securities in 2017, GlassRatner Advisory & Capital Group in 2018, and Alderney Advisors in 2020. The 2014 combination with Great American Group created B. Riley Financial and gave the group a significant presence in appraisal, auction, and liquidation services. The company later integrated National Holdings and its brokerage operations into its wider platform. The group has also used acquisitions and investments to build a communications and brands portfolio. It acquired United Online in 2016, MagicJack in 2017, and took majority positions in several fashion labels in 2019, including Catherine Malandrino, Joan Vass, Limited Too, and Nanette Lepore. It acquired an equity interest in Scotch & Soda in 2023. As described in company reporting, its operating structure has included capital markets, wealth management, auction and liquidation, financial consulting, communications, and brands. Capital markets has historically been the largest operating segment, while liquidation and advisory work have provided exposure to corporate restructurings and distressed retail conditions. The company experienced increased scrutiny during and after its acquisition-heavy expansion. In 2023, Wolfpack Research disclosed a short position and criticized the group’s leverage, lending, and investments. Later that year, the share price fell sharply after disclosures involving investment losses and the financial condition of Franchise Group, which B. Riley had acquired as part of an investor consortium. The company’s lending relationship with Franchise Group founder Brian Kahn also became linked in public reporting to a securities-fraud investigation. B. Riley said it reviewed the relevant transactions and later disclosed regulatory, accounting, and reporting issues, including material weaknesses in internal controls. In 2024, the company reported a wider loss, reduced its dividend, delayed its annual report while reviewing transactions involving Kahn, and subsequently filed the report after its auditor completed its work. Bryant Riley later proposed taking the company private at $7 per share, while the company separately outlined asset-sale and financing plans intended to reduce leverage. The group remains an active financial-services enterprise, although its ownership structure, balance-sheet strategy, and business portfolio have been subject to continuing change and scrutiny.

History

Bryant Riley founded B. Riley & Co. in 1997 as a research and stock-selection firm serving institutional investors and concentrating on smaller companies. The firm was fined by the SEC that year for inadequate record-keeping. Riley initially avoided investment banking because of potential conflicts between research and corporate-finance work, but the company entered that field in July 2003 by acquiring Friend & Co., a boutique investment bank. The expansion accelerated in the 2010s. B. Riley acquired Caris & Co. in 2012 to strengthen research, sales, and trading. In June 2014 it merged with Great American Group, an appraisal and liquidation provider, creating B. Riley Financial. The company was approved for an uplisting to Nasdaq in 2015. It acquired United Online in 2016, followed by FBR & Co. and Wunderlich Securities in 2017. FBR expanded investment-banking scale, while Wunderlich broadened brokerage and wealth-management capabilities. GlassRatner Advisory & Capital Group joined the group in 2018, adding restructuring and advisory expertise. B. Riley purchased a 49% interest in National Holdings in 2018 and acquired the remaining interest in 2021. National Securities, its largest subsidiary, closed in 2022 and its activities were integrated into B. Riley after regulatory penalties. The company also acquired MagicJack in 2017 and developed a fashion-brand portfolio in 2019 through majority investments in several labels. During the COVID-19 period, the collapse and restructuring of brick-and-mortar retail created additional liquidation opportunities. Alderney Advisors, an automotive restructuring specialist, was acquired in 2020. The group later acquired 272 Capital in 2021 and middle-market mergers-and-acquisitions adviser FocalPoint in 2022. The post-2021 period was marked by weaker investment-banking conditions, investment losses, leverage concerns, and growing scrutiny of selected transactions. In 2023, Wolfpack Research published a critical short report. B. Riley’s acquisition of Franchise Group as part of an investor consortium, and its lending relationship with Brian Kahn, became central to public and regulatory attention. In 2024 the company reduced its dividend, delayed its annual report during a transaction review, and disclosed material weaknesses in financial reporting controls. Bryant Riley proposed a take-private transaction, while management pursued asset sales and financing changes to reduce debt. These developments left the company’s future portfolio and capital structure in transition.

2024
Deleveraging and take-private proposal
[1]BRC Group Holdingsen.wikipedia.org
The company eliminated its dividend, pursued asset sales and financing changes, and received an unsolicited take-private proposal from Bryant Riley.
2023
Franchise Group transaction and scrutiny
[1]BRC Group Holdingsen.wikipedia.org
The company joined an investor consortium acquiring Franchise Group, followed by increased market and regulatory scrutiny.
2021
S&P 600 inclusion
[1]BRC Group Holdingsen.wikipedia.org
B. Riley became a constituent of the S&P SmallCap 600 index.
2017
FBR and Wunderlich acquisitions
[1]BRC Group Holdingsen.wikipedia.org
The acquisitions expanded investment banking, brokerage, and wealth-management operations.
2015
Nasdaq uplisting approved
[1]BRC Group Holdingsen.wikipedia.org
The company received approval to move its listing to Nasdaq.
2014
Merger with Great American Group
[1]BRC Group Holdingsen.wikipedia.org
The merger combined B. Riley’s capital-markets activities with appraisal, auction, and liquidation services.
2003
Entry into investment banking
[1]BRC Group Holdingsen.wikipedia.org
The company acquired Friend & Co., beginning its expansion from research into investment banking.
1997
B. Riley & Co. founded
[1]BRC Group Holdingsen.wikipedia.org
Bryant Riley founded the research and stock-picking firm serving institutional investors and focused on smaller companies.

Products and positioning

A diversified financial-services platform combining capital markets with restructuring, liquidation, wealth management, and opportunistic corporate and consumer-brand investments.

Financial services · 2003
Capital markets and investment banking
Advisory, underwriting, brokerage, sales and trading, and research services, with a historical emphasis on small-capitalization and middle-market companies.
Auction and liquidation · 2014
Great American Group
Appraisal, auction, liquidation, and retail-disposition services for businesses dealing with excess inventory, restructuring, closures, or other asset-sale requirements.
Wealth management · 2017
Wealth management and brokerage
Brokerage and wealth-management capabilities expanded through acquisitions including Wunderlich Securities and National Holdings-related operations.
Advisory services · 2018
Financial consulting and restructuring
Turnaround, restructuring, forensic, valuation, and financial advisory work delivered through businesses including GlassRatner and Alderney Advisors.
Corporate investments · 2016
Communications and consumer brands
A portfolio of communications, digital-media, and consumer-brand businesses, including United Online, MagicJack, and investments in fashion labels.

Controversies

2024
SEC inquiry and reporting weaknesses
Reports described an SEC investigation, while the company’s annual filing disclosed material weaknesses in internal financial reporting controls and revisions to previously reported information.
Source
2023
Wolfpack Research short report
Wolfpack Research alleged that B. Riley had become overleveraged and exposed to borrowers and investments facing substantial default or going-concern risks. The report contributed to a sharp decline in the company’s share price.
Source
2023
Franchise Group and Brian Kahn scrutiny
Public reporting connected the company’s Franchise Group financing and acquisition relationships with Brian Kahn to a securities-fraud investigation. B. Riley later commissioned and disclosed reviews of the relevant transactions.
Source
2020
Wunderlich arbitration dispute
FINRA found Wunderlich Securities liable in a dispute brought by Dominick & Dickerman and Michael Campbell. B. Riley paid nearly $11 million to settle the matter and later litigated indemnification issues with Gary Wunderlich.
Source
1997
SEC record-keeping fine
The SEC fined the company $5,000 for inadequate record-keeping during its early operation.
Source

2024
Prioritize deleveragingStrategy
Background
The company faced losses, leverage concerns, and pressure surrounding its balance sheet.
Action taken
Eliminated its dividend and announced plans to sell assets and renegotiate financing, including a possible sale of a majority stake in Great American Group.
Aftermath
The proposed transactions were intended to generate roughly $410 million in gross cash proceeds for debt reduction.
Expected gross cash proceeds. Approximately $410 million (September 2024 preliminary plans)
Source
2023
Acquire Franchise Group with an investor consortiumM&A
Background
B. Riley continued its strategy of acquiring or investing in operating companies outside traditional financial services.
Action taken
Participated in a consortium acquisition of Franchise Group valued at approximately $2.6 billion and provided a $200 million loan to Brian Kahn.
Aftermath
The transaction became a major source of market, media, and regulatory scrutiny after Franchise Group’s credit downgrade and allegations connected to Kahn.
Transaction value. Approximately $2.6 billion (2023)
Source
2019
Build a fashion-brand portfolioStrategy
Background
The company pursued diversification into consumer brands and fashion.
Action taken
Invested $116.5 million for majority ownership of six fashion brands, including Catherine Malandrino, Joan Vass, Limited Too, and Nanette Lepore.
Aftermath
Brands became part of the company’s broader communications and brands segment.
Investment amount. $116.5 million (2019)
Source
2014
Combine with Great American GroupM&A
Background
B. Riley sought to broaden its financial-services platform beyond research and investment banking.
Action taken
Merged with appraisal and liquidation provider Great American Group to form B. Riley Financial.
Aftermath
The group gained a major auction, appraisal, and liquidation business alongside its capital-markets operations.
Source

Recent events

2024
Bryant Riley proposes taking the company private[1]BRC Group Holdingsen.wikipedia.org
Pricing · Leadership change
Bryant Riley made an unsolicited proposal to acquire the company at $7 per share, while the company eliminated its dividend and emphasized deleveraging.
2024
Asset sales and financing plans announced[1]BRC Group Holdingsen.wikipedia.org
M&A
The company outlined plans to sell assets, renegotiate financing, and potentially sell a majority stake in Great American Group to raise cash for debt reduction.
2021
B. Riley becomes an S&P 600 constituent[1]BRC Group Holdingsen.wikipedia.org
Other
The company joined the S&P SmallCap 600 index.

Sources7 sources

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