Managers move to buy fitness chain

Holmes Place has struggled to lift its share price

The UK health club chain Holmes Place has said it is considering a bid for the firm from its senior management.

Following newspaper speculation, the company said it had authorised its chief executive, Allan Fisher, and finance director, Lee Ginsberg, to explore a possible management buyout.

It added that the process was still at an early stage, and that a further announcement would be made "in due course".

Shares in Holmes Place jumped following the announcement, and by mid-afternoon had climbed to 151p after starting the day at 125p.

Tough times

Holmes Place operates more than 60 health clubs across Europe, most of which are in the UK.

At their peak in 1999, shares in the company were worth 371p.

But the share price has tumbled as the fitness sector has fallen out of favour with investors.

In May this year the company disappointed shareholders when it said growth in its core UK market had remained flat in the early part of the year.

The company's chairman Graham Reddish said the group was "encountering an increasingly competitive environment".

Holmes Place is not the only health club chain to run into difficulties.

Rival operator Esporta saw its share price slump last year after it issued a profits warning.

Last month Esporta rejected a £130m ($199m) takeover bid from the private equity firm Duke Street Capital.