Financial services giant Dawnay Day has signalled that it could be about to sell some of its assets after announcing a review of its operations.

Reports claim its board has approached Alan Bloom of Ernst & Young to manage a restructuring of the group after failing to raise new funds.

Dawnay Day operates in the property investment, fund management and private equity sectors and has companies, such as clothes retailer Austin Reed, the Lygon Arms Hotel in the Cotswolds and restaurant The Wolseley in its portfolio.

The first signs of problems within the group came in early July, when it sold its 20 per cent stake in F&C Asset Management for a loss, reported to be between £70 million and £80 million.

Dawnay Day’s investment banking division is tipped to be put on the market as well as several of its European real estate funds.