It said its decision not to retender for the Camden contract, which expires next March, was due to 'a change in the organisation's corporate strategy'. The company has invested£750,000 in the three centres it has managed for Camden since 1996.
Camden blamed diminishing returns on increased competition and the deteriorating fabric of the three centres.
Holmes Place also runs sports centres for Bournemouth BC, Solihull MBC and Rochford DC. But a company spokesman refused to comment on whether the move represented a shift away from the local government market.