A hedge fund is set to take a controlling stake in high street bookseller, Waterstones.

Elliott Advisors did not disclose how much it was paying for its share in the chain, which has branches in Cirencester, Gloucester and Cheltenham and a total of 283 stores in the UK and Ireland.

Current owner Lynwood Investments would retain a minority stake under the deal and its chief executive of seven years, James Daunt, is being retained by the new owner, as reported by Sky.

During a tough time for the high street, Waterstones' fortunes have recovered over the past two financial years to record profitability. Profits at the chain grew to £18m in the 12 months to April 2017 on sales of £400m.

Punchline said: "With so many chains going into administration and closing stores, it is refreshing to see a high street store which is good at what it does continuing to thrive. While some people undoubtedly prefer ebooks and cheap books from Amazon, there will always be room for a real book shop with staff who are enthusiastic about what they sell."