Mr Lloyd, who set up Next Generation with his son Scott in 1996 after selling David Lloyd Leisure (DLL) to Whitbread for £200 million, is understood to have appointed UBS, the investment bank, to investigate strategic options.

The main beneficiaries of an outright disposal would be the horse racing entrepreneurs Dermot Desmond, Michael Tabor, John Magnier and JP McManus, who between them own 60 per cent of the company, which operates the Harbour Club in Chelsea, Central London.

The Lloyd family have about 10 per cent, while Scottish & Newcastle, the brewer, has 15 per cent. Other shareholders include Denis Brosnan, the company’s chairman, and Billie-Jean King, the former Wimbledon tennis champion.

The appointment of UBS follows attempts by the Lloyd family, advised by Dresdner Kleinwort Wasserstein, to find a private equity backer to buy out the other shareholders and fund an acquisition spree. There is rumoured to have been talks with CVC Capital Partners that came to nothing.

The issue that may hamper the latest plan is the issue of valuation.

Although its 14 clubs have a property value of about £200 million, analysts reckon that the business is worth perhaps £150 million, including debt of £90 million, when valued on a multiple of its earnings.

However, a source close to the company claimed that it was one of the few operators still showing organic growth, adding that it has two further openings, in Leicester and Swindon, scheduled for next year, with two more sites in the pipeline for 2007, including one in Blackpool.

In the event of a sale, the obvious buyer would be Esporta, the rival operator controlled by Duke Street Capital. Whitbread, previously cited as a possible suitor, is thought to have ruled out acquisitions until it sorts out its trading problems.

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