The London & Edinburgh Swallow Group (LESG), the UK operator of pubs and hotels, has entered administration. Ernst & Young has been appointed to handle the process. The company operates 671 sites and has about 7,500 employees. The news affects a number of different LESG companies. These companies comprise: Swallow Inns, with 116 hotels; London & Edinburgh Inns, with 36 hotels, 93 managed pubs and 53 tenanted pubs; Newlord, which operates a 305-strong tenanted estate; and React Inns, with 46 tenanted pubs. Site numbers for The Gourmet Pub Company, another LESG company, are not known. Joint administrators Roy Bailey, Alan Bloom and Angela Swarbrick at E&Y, will lead the administration. Swarbrick said: “We are continuing to trade the various companies on a 'business as usual' basis while we explore the possibility of a sale of the businesses and their assets as going concerns.” E&Y said the company had struggled amid deepening losses. Observers suggested that it had been unable to meet the high rental levels against many of its properties, which were put in place through a series of sale-and-leaseback deals conducted by the company with property buyers.