The proposed MBO of Denbighshire Leisure Ltd has stalled following the withdrawal of the private equity investor.

Council members voted to sell DLL for £1.5 million at a meeting on 26 March, but the council has confirmed today (30 April) that the investor has withdrawn its offer.

The statement said: “The primary purpose of this proposal was to secure a sustainable future for leisure services for Denbighshire residents and the council and DLL will continue to work together to explore other opportunities to achieve this.

“We remain committed to providing the best services for Denbighshire and to safeguard our exceptional leisure services long into the future.”

The MBO had proved controversial, with Unison saying it would oppose it and the lead member for finance, Cllr Gwyneth Ellis, resigning from Denbighshire County Council’s cabinet over her concerns.

DLL managing director, Jamie Groves, told HCM there are still plans to make it happen further down the road: “Despite the decision being made by full council, who were following the correct democratic process, a couple of elected members of DCC were determined to generate unnecessary negative publicity. Based on this, the investment fund supporting the MBO has taken the decision to withdraw from the deal. This is a massive investment opportunity lost for DLL and the residents of Denbighshire.

“On a positive note, a silver lining is that the national press coverage has brought even more interest and further options for investments to DLL’s door. We will now take some time to consider these options with the council, with further announcements to follow over the coming months.

“DLL remains committed to providing the best services for Denbighshire and beyond, and this bump in the road may hold us up temporarily in our pursuit to safeguard our exceptional services in Denbighshire, but it won’t stop our long-term plans.

“In the meantime, DLL will be focusing on the immediate, which is providing an exciting summer of activities and developments for our residents and visitors,” said Groves.