David Lloyd Leisure prepares to hire investment bank to assess its options

GYM chain David Lloyd Leisure is preparing to appoint an investment bank to advise on its strategy, according to reports.

The company, which is owned jointly by Caird Capital, the private equity firm whose investors include Lloyds Banking Group, and London & Regional, the property firm owned by the billionaire Livingstone brothers, held a board meeting in November to discuss appointing an adviser.

The move is reportedly designed to help the board assess its options and consider potential acquisitions, rather than to engineer a sale.

It is understood David Lloyd is planning to add new clubs to the chain of 79 centres it operates in Britain, and is looking for further expansion opportunities overseas.

Lloyds Banking Group, which holds a 30 per cent equity stake in the company through Caird Capital, is understood to be fully supportive of the business and the management.

David Lloyd was unavailable for comment.