[4][5] Dawnay Day bought German department store chain Hertie from Karstadt-Quelle (later Arcandor) in partnership with Hilco in 2005.[1].

Hertie filed for bankruptcy on May 20, 2009 since Dawnay Day could not support it any further due to its own dire financial situation.

The liquidator of Hertie claimed the department store chain got into difficulties due to improperly high rent payments to the real estate owners, however as seen in the case of Arcandor's bankruptcy in June 2009, the whole German department store sector experienced severe difficulties during these times.

Dawnay Day has been criticized and opposed for its purchase of 47 apartment buildings in East Harlem where it has attempted to gentrify the area and make rents unaffordable to current low-income residents.

The gentrification of the area and removal of current renters has been opposed by the tenants based Movement for Justice in el Barrio.