Ernst & Young, the administrators who are currently operating London & Edinburgh Swallow Group (L&ESG), have announced that 60 members of staff at the group’s head offices in Kent have been made redundant. The administrators were brought in last week when L&ESG went into administration, after struggling amid deepening losses. Ernst & Young also announced last week that it had sold the business and assets of 240 hotels and pubs previously managed by L&ESG to Flodrive Group and “its joint venture partners”. The deal is subject to contract. Roy Bailey, one of the administrators, said at the time: “We are delighted to have made early progress in salvaging a material part of the hotel and pub portfolio and securing the jobs of almost 2,500 employees.” LESG did not own any of the properties concerned. It is understood that the deal largely relates to the fixtures and fittings, plus the central support functions, of the 240 businesses. Flodrive, a property investor, has close connections with LESG. According to Property Week, Flodrive has bankrolled around 80% of LESG’s acquisitions to date. Flodrive is owned by the Khalastchi family, which is estimated to be worth almost £100m according to The Sunday Times Rich List. In the year to 2005 it made a profit of £13m on turnover of £65m. The deal still leaves more than 400 sites – a mix of pubs and hotels – with administrators.