Whitbread 'to pull Curzons sale'

WHITBREAD is expected to put the sale of its Curzons gyms on hold due to lack of interest. The group, which also owns the David Lloyd tennis and leisure clubs, put the gyms, all in London, up for sale last year but is now likely to wait until later this year before searching in earnest for buyers prepared to part with about £12m.

The news comes amid speculation that Whitbread chief executive David Thomas is likely to put on ice the sale of 11 Swallow hotels put on the market 18 months ago at about £65m.

A sale of Curzons was expected last year to PR guru Matthew Freud and entrepreneur Joel Cadbury, backed by an investment institution. Their Longshot Health & Fitness group is believed to have walked away, and industry sources say no other bidders are seriously interested.

Whitbread declined to comment, but observers expect the company to suspend both sales until the economic situation improves.