The Maidstone firm behind Swallow Hotels and the Gourmet Pub Company has called in administrators Ernst & Young.
London & Edinburgh Swallow Group said it has struggled for "some time in the face of increasing heavy losses".
Ernst & Young said the firm would operate as normal while it examined options including the sale of assets.
Swallow Group operates 671 sites across the UK, including the Kent International Hotel and Swallow Carnoustie, and has about 7,300 staff.
There are 70 Swallow Hotels in Scotland including five in Edinburgh, among which the Learmonth is the biggest.
The London & Edinburgh Swallow Group is the holding company for five firms including London and Edinburgh Inns, Newlord, and React Inns.
"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," said Ernst & Young's Angela Swarbrick.
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