Cannons has withdrawn the £203m (€324m) offer it made last month for Holmes Place, its rival UK leisure club business, throwing the bidding open to other contenders including private equity firms.

The board of directors of Holmes Place, who are advised by Hawkpoint, said: "Cannons Group no longer wishes to pursue a merger at 200p per share as envisaged, due in part to a downturn in trading at Holmes Place." Cannons Group, backed by its owner Royal Bank Private Equity, had been conducting exclusive negotiations and due diligence with Holmes Place.