David Lloyd owners ‘pondering sale’

The gym chain, which runs 79 centres in Britain and a further 10 across Ireland, Belgium, the Netherlands and Spain, is owned jointly by the billionaire Livingstone brothers and Lloyds Banking Group’s private equity vehicle Caird Capital.

Taxpayer-backed Lloyds is intent on restructuring the finances of the business, which has ballooned into the bank’s second largest corporate debt, which could lead to a potential sale, reports said.

Chief executive Scott Lloyd could launch a bid for the rival racquet business owned by Virgin Active, as part of any deal to sell David Lloyd, it was also reported.

David Lloyd was bought for £940m in May 2007 at the height of the private equity bubble. Mr Lloyd headed a London & Regional-led swoop on the business, which had been founded by his father 26 years earlier.

London & Regional’s Next Generation gym chain was rolled into David Lloyd in the acquisition.