A MUCH loved institution has announced its sad closure.

Hattons Model Railways has confirmed it will close this year after 77 years of service.

It confirmed changing market conditions has led to the company being wound down.

It is not insolvent.

A spokesman said: "It is with immense sadness that we share news of the upcoming closure of Hattons Model Railways, an institution in the hobby since 1946.

"Over the decades, we've been privileged to serve enthusiasts and share our passion for model railways with hundreds of thousands of customers.

"Today we invite our customers to take part in our Closing Down Sale.

"The company is NOT insolvent. The company is being wound down in an orderly fashion, leaving no outstanding debts.

"Changing market conditions have had a large impact on the business, we have seen this in declining customer numbers, changing customer demographics and supply chain disruption.

"Increased cost of compliance has become a large factor. Brexit, GST and other operational costs of running an international business have all increased dramatically over the past few years.

"We do not have an exact date for closing down as of yet. We will be communicating this in the coming weeks."