London & Edinburgh Swallow Group (L&ESG) – the privately owned hotel and pub operator – has appointed Ernst & Young as joint administrators to conduct a review of the business.

The group comprises Swallow Hotels, London & Edinburgh Inns, Newlord, React Inns and The Gourmet Pub Company.

A statement from L&ESG said: “For some time, the company has struggled in the face of increasing heavy losses. The directors of the group have considered various avenues and concluded that a restructuring through an insolvency process provided the best option for the business.”

The group has 671 properties across the group in the UK, with more than 7,000 employees.