THE future of a chain of 17 pubs and hotels owned by a York businessman was hanging in the balance today.

The Exhibition Hotel Group, which runs several high-profile pubs, including The Snickleway Inn, The Exhibition Hotel and YO1, has been declared insolvent.

Administrators said all the businesses, which are spread across York and East Yorkshire, will remain open while they try to find a buyer.

But employees, who said they had been ordered not to discuss the financial trouble, said they feared an uncertain future.

Director Danny Davies, 51, who ran the group with his wife, Michelle, 55, known as Shuni, was not available to comment. Richard Fleming, of accountancy firm KPMG, who is handling the administration, said: "The pubs are trading as normal. We are trying to find buyers for them all so they can continue."

He said the family-owned business had fallen into financial trouble after money spent on renovations was not matched by takings.

One pub worker said: "We're carrying on as normal, but it's not good. We don't know what is happening.

"The worry is that if another company takes over they will want to bring in their own people and there will be job losses."

A meeting is expected to be held within four weeks to discuss the sale or reconstruction of the business and the payment of creditors.

In York city centre, The Exhibition Hotel Group is responsible for Thomas's, in Museum Street, The Red Lion, in Merchantgate, and The Fox, in Holgate Road.

It runs The Royal Oak, in Copmanthorpe, The Blacksmiths Arms, in Huntington, The Cottage, in Haxby, The Black Swan, in Pocklington, The Carpenters Arms, in Fangfoss, and several pubs in Hull.

Mr Davies, and his wife started the group in 1992, and have run The Exhibition Hotel since 1982.

Public records show the Bootham pub to be the company's head office.

At one point the group owned more than 20 pubs and employed more than 300 people. It specialised in buying up run-down pubs and bringing them back to life.

The last public accounts, posted in March 2004, valued the company at £645,000, with just under £500,000 worth of liabilities.

It made £135,000 profit that year.

Updated: 09:58 Monday, October 10, 2005