Luxury hotel operator The Eton Group has been placed into administration, putting 250 jobs at risk.
The company, which has seven luxury hotels including Threadneedles in the City and the Glasshouse in Edinburgh, is now under the control of KPMG administrators Jane Moriarty and Allan Graham.
In a statement the administrators confirmed that the Eton Group (which trades as the Eaton Collection) was in administration but added that 42 The Calls in Leeds and the Scotsman hotel in Edinburgh were not part of the process.
Moriarty said: “We are continuing to trade the business while we assess the position of the hotels.
“Historically, however, the hotels have traded successfully and are well regarded at the luxury end of the market so we are hopeful of securing a successful resolution to this situation.”
Eaton founder quits roll
Last autumn Eaton Group managing director Peter Tyrie quit his role at the business he founded in 1998 to pursue new challenges. Eaton was acquired by Middle East owned hotel company JJW Hotels & Resorts in 2007.
Tyrie was one of a number of hospitality figures to be recognised in this month's Queen's Birthday Honours List.
The hotels in administration comprise: The Academy, The Colonade and Threadneedles in London, as well as Quebecs in Leeds and the Glasshouse in Edinburgh.