E&Y veteran to restructure Dawnay Day

Dawnay Day has appointed veteran
corporate administrator Alan Bloom, Ernst & Young head of restructuring, to
restructure aspects of Dawnay Day’s portfolio of holdings, after the group was
hit by hefty losses on investments such as its financial services and real
estate, including landmark properties such as the Lygon Arms hotel in the
Cotswolds.

The group is putting its investment banking division on the block and it is
expected more companies and holdings will be offered for sale, the
Financial Times reports.

The 51% stake in Dawnay Day Investment Banking on offer is the third asset to
be put up for sale since margin calls and losses on its investment in F&C
Asset Management forced Dawnay Day to sell its 20% in the fund manager last week
and its stake in Dawnay Day Capital Markets, a small brokerage firm, yesterday.

The series of rapid sales has raised concerns the Guy Naggar and Peter
Klimt-owned group is the latest casualty of the credit crunch, but sources close
to Dawnay Day maintain none of the group’s businesses are in administration.

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