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We catch tycoon Duncan Bannatyne selling snack bars he agreed to hand out free

Fitness clubs owned by Dragons’ Den star Duncan Bannatyne have been ripping off customers by charging them for free cereal bars.

Kellogg’s agreed a promotional deal with Bannatyne Fitness for its new Special K snacks to be handed out without charge to its 200,000 members.

But staff were sent an internal memo ordering them to charge for the bars so profits from sales at the clubs’ cafes were not affected.

A Mirror reporter was charged 60p for three Special K bars at a Central London club. Another club was charging 25p a bar.

One Bannatyne Fitness worker said: “It’s outrageous. Most staff who knew about the scam were shocked and did not agree with it. We’re ripping everyone off at a time when people are struggling to stay afloat.”

But millionaire Bannatyne was unrepentant. He said: “Who do Kellogg’s think they are? They want us to give their product away to promote their brand. Would Wetherspoons give away another firm’s beer and make no profit? Of course not. We retail breakfast bars in our cafe for a profit and with that profit we pay our staff.”

Kellogg’s said they were investigating, adding: “This was 100 per cent a free promotion for consumers. We thank the Mirror for bringing it to our attention.”

Most of the 61 health centres across the UK owned by Scot Bannatyne are believed to be in the promotion.

On January 5, managing director Nigel Armstrong emailed them about the promotion. His memo said: “Some clubs will have received boxes of cereal/cereal bars from the above as samples as part of a campaign that is being advertised in the clubs. However, if you have received any, then they are not to be given away to members.

“Simply take into stock and sell at the cafe bar accordingly.

“They are strictly not to be given away and they shouldn’t detract from our normal genuine sales.”

The scam was exposed after a worker from Kellogg’s distribution firm Boomerang was charged 25p for a cereal bar that he knew should be free.

On Tuesday, a Bannatyne regional manager wrote an urgent memo that read: “Guys, please be aware that Boomerang are phoning as they believe we are selling the bars.

“Ensure whoever answers the phone to them is fully aware how to respond, no, we are not.”

Staff were ordered to display a Kellogg’s promotional stand which made it clear the snacks were free.

At the Bannatyne club on Old Broad Street, London, a Mirror reporter saw a promotional display on the counter for the Kellogg’s bars. A price of 20p had been scrawled on the box in black felt tip pen

Bannatyne is best known as one of the investors on BBC2’s Dragons’ Den. He sold his care home business for £46million in 2006.

Source: Daily Mirror