Health club operator Holmes Place, which earlier this year warned growth could be affected by stronger competition, said it was in talks to be sold.
The group has authorised chief executive Allan Fisher and finance director Lee Ginsberg to explore a management buyout (MBO).
Holmes Place revealed the possibility of a MBO in a brief statement to the London Stock Exchange following newspaper reports at the weekend.
The news came just months after the London-based group warned stronger competition in the UK market could hit future growth.
While cheaper rivals have posted bumper figures over recent months, trading at Holmes Place in December and January fell below expectations.
In May, chairman Graham Reddish said at the group's annual meeting trading was in line but established clubs were facing increasingly competitive conditions.
The group has more than 60 clubs across Europe, the bulk in the UK.
Rival operator Esporta last year fell into the red after poor trading and a write-down on the value of four of its clubs. Last month, it rejected a £133 million takeover bid from its biggest shareholder, Duke Street Capital.
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