More Dawnay Day Firms Distance Themselves From Troubled Parent

Tom Burroughes

17 July 2008

More companies in which the troubled Dawnay Day group holds stakes have distanced themselves from the UK financial services and property empire that has suffered a round of heavy losses.

Dawnay Day Sirius and Dawnay Day Carpathian, London-listed property funds, said they would change their names; Carpathian has also ended its contract with Dawnay Day to manage the former's assets.

Dawnay Day is owned and controlled by Guy Naggar and Peter Klimt. It has appointed Ernst & Young to conduct a strategic review of its businesses, such as hotels, retail chains, a brokerage and other operations.

Losses on Dawnay Day's portfolios have forced the group to sell two of its investments and put a third up for sale.

Dawnay Day Quantum has stressed that in the wake of the financial problems of Dawnay Day Group – one of the shareholders in the joint venture, it is in very sound financial health.

WealthBriefing understands that the management of DDQ, a structured products provider specialising in commodities, said that the company is a stand-alone financial services company with its own board of directors and has a healthy balance sheet and bank accounts.

Furthermore, the company has reminded its clients that it is independently regulated by the Financial Services Authority and has re-assured them that it can comfortably meet its capital adequacy requirements. The company is self-financing and has been for some time, it said.