Gatemore Capital snaps up 10% stake in Moss Bros

// Gatemore Capital reveals 10% stake in Moss Bros on London Stock Exchange
// The purchase makes it one of Moss’ largest shareholders
// Activist campaign could be on the cards although Gatemore is yet to engage with Moss Bros management

Gatemore Capital Management disclosed a 9.57 per cent stake in Moss Bros on Monday, making the asset manager one of Moss’ largest shareholders.

The purchase was announced on the London Stock Exchange this morning.

The newly acquired stake will likely spur on expectations of an activist campaign from Gatemore.

The company also recently took a stake in Majestic Wines.

Back in 2017 Gatemore took an 8 per cent share in French Connection where it led a group of investors in pushing for changes to its management.

A source close to the asset manager cited by Sky News said any expectations of an activist campaign would be premature at best, and that Gatemore was yet to engage with Moss Bros’ management.

The news comes after Moss Bros revealed in March that it had swung to a full year loss after being hit by mounting woes from stock shortages, extreme weather and heavy discounting.

Despite tough trading for the wider sector, it was Moss Bros’ first annual adjusted pretax profit loss since 2011.

The menswear retailer recorded a £4.2 million loss for the 52-week period ending January 26, compared to a profit of £6.7 million the year prior.

Moss Bros also had a change of hands in March when Joules boss Colin Porter was announced as the new chairman, replacing Debbie Hewitt of nine years.

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