An obscure Thai hedge fund is demanding that candle and diffuser retailer Dusk Group buy back shares from investors to support a sliding share price, despite a shaky consumer environment weighing on the sector.

BNG Special Situations, which has offices in Bangkok and manages $US200 million ($300 million), has been in discussions with the company’s chairman, John Joyce, pushing its views about a better use of capital. BNG holds 2.2 million Dusk shares, giving it an estimated 3.5 per cent stake.