Conn's Files for Chapter 11 Amid Financial Turmoil, B. Riley's $250M Deals Scrutinized

Conn's Inc. ($CONN) has filed for Chapter 11 bankruptcy, leading to significant financial turmoil and thousands of job losses. The company's dealings with B. Riley Financial Inc. ($RILY) and Franchise Group Inc. ($FRG) have come under scrutiny. Bryant Riley, associated with B. Riley Financial, is accused of defrauding his wealth management clients and faces potential prison time. Critics argue that Riley's financial maneuvers, including stuffing worthless deals into wealth management accounts, have exacerbated Conn's financial woes, with at least $250 million of Franchise Group equity involved. Brian Kahn of Franchise Group is also implicated. The liquidation of Conn's assets is being promoted by some as a positive outcome due to Riley's alleged expertise, despite the massive restatement of financials and job losses.