Odey Asset Management is being dismantled, with the group saying it is in “advanced discussions” to transfer funds and staff to rival firms in the wake of sexual misconduct allegations against its founder.

In a statement to clients on Thursday, the group said it was in “advanced discussions” to rehouse its funds and shift staff to other asset managers, subject to regulatory approval.

The fallout from the allegations of sexual assault or harassment against its founder Crispin Odey, reported by the Financial Times last week, has been swift. Redemptions at several of its funds were restricted this week after key banking partners, including JPMorgan and Morgan Stanley, cut ties with the group.

The firm added that while it had been in “constructive dialogue” with its service providers, it had entered into discussions to break up the firm as “it has however become clear that some investment management activities of the partnership are affected by recent events”.