Fitness club entrepreneur Duncan Bannatyne could move his headquarters to Durham because of problems finding a suitable location in Darlington.

The move would be potentially damaging to a town trying to raise its profile as a haven for business ventures.

Bannatyne's Fitness employs 26 people at its head office in Darlington's Cleveland Terrace, but it needs more space to accommodate an anticipated nine additional administrative workers.

As previously reported in The Northern Echo, Mr Bannatyne pulled out of a move to the new Morton Palms development after a disagreement with town planners over whether sports chain JJB would be granted permission to build a "sportsdome" on the same site.

He has also gone on record saying business property rents are far too high.

Last night, he said city planners in Durham had given him assurances he would be able to build an HQ next to an existing club in Belmont.

He said: "We have got a beautiful plot of land beside our club in Durham and we could go there."

He added: "As the company expands we need more office space. The Durham planning office said they would recommend it."

Darlington Borough Council said every effort was being made to keep the fitness operations in the town.

A spokeswoman said: "There are sites at Morton Palms and elsewhere in Darlington that we would be delighted to see developed as a headquarters and further leisure development for Mr Bannatyne.

"We have done everything we can to make his vision a reality in Darlington and are willing to work with him to find a suitable site.

"As a council with a keen interest in the economic regeneration and viability of the town, we are keen to encourage homegrown businesses such as Bannatyne's to remain here.

"An example of our commitment is the help and advice given to Northgate Holdings, an international plc. We worked successfully with them to find a suitable site in Darlington. The same kind of expertise and assistance is on offer to Mr Bannatyne should he wish to take it."