The dissolution of the Dawnay Day empire gathered pace yesterday after more companies in which it holds stakes distanced themselves from the property and financial services business.

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

In a weekend in which Dawnay Day, owned and controlled by Guy Naggar and Peter Klimt, appointed Ernst & Young partner Alan Bloom to conduct a strategic review of its businesses – which range from hotels, including London’s Wolseley, to retailers such as Austin Reed.

Losses on Dawnay Day’s portfolios have forced the group to sell two of its investments and put a third up for sale. Talk is mounting that other parts of the business are for sale or heading towards administration.

A third property fund, Dawnay Day Treveria, is also reviewing its relationship with the group.

Shares in all three funds dropped yesterday as it became clear that directors of Dawnay Day had been selling their investments in Treveria and Sirius.

Financial Times, Daily Telelgraph, The Independent