London & Edinburgh Swallow Group, the privately owned hotel and pub operator, has appointed administrators to parts of its business because it has hit financial problems, according to The Times. The report suggests that the corporate recovery team at Ernst & Young was set to move in amid speculation that the company was struggling to keep up rent payments on a large percentage of its 146 Swallow hotels and inns. The company had earlier this week said it had appointed BDO Stayward and Ernst & Young to conduct a review of its business. Alan Bowes, executive chairman, said the company, which also operates around 700 pubs, has appointed the consultants to advise it on the “best way forward”. BDO and Ernst & Young are expected to report on their findings within four to six weeks. Bowes has not ruled out that the review could lead to London & Edinburgh leaving the pub sector completely. Peter Gray and Danny Rogers, both directors at London & Edinburgh Inns, have recently left the company, with Guy Lissimore being appointed to oversee the company’s tenanted pub operations. The company announced in July it was set to merge its tenanted pub operations with that of County Estate Management, which would create the third largest specialist tenanted and leased pub group in the UK with about 1,800 pubs.