Gatemore Capital has snapped up a 10% stake in suit seller Moss Bros

Management at Moss Bros woke up to a nasty shock today after it was revealed that activist investor Gatemore Capital had snapped up a 10% stake in the suits seller.

Troublemaker Gatemore is best known for its stake in struggling Majestic Wines.

Moss Bros has traditionally ticked along with minimal fuss, supplying young men with smart suits for work and weddings. But in March it posted its first annual loss in eight years and abandoned its dividend.

The firm blamed Brexit for a lack of confidence among its male customer base, which also led to heavy discounting.

Brokers say Gatemore has sniffed an opportunity and taken its chance to pounce, although the investment firm is yet to formally engage with management.

One broker said: “I think it is safe to assume that there will be store closures. The question is who on the management team Gatemore will target.”

The shares were up 2%, or 0.4p, to 21p as investors backed a possible shake-up.

On the blue-chip index the FTSE 100 was up for the sixth consecutive session, adding 33.93 points to 7365.87.

The positive sentiment was being driven by President Trump’s deal with Mexico, signed on Friday. The deal sees Mexico agree to deploy its national guard and to keep migrants seeking asylum in the US in Mexico while their claims are processed.

Hopes are this will dampen the trade war with China too and shares in Anglo American rose 31p to 2005p, BHP Group moved up 28p to 1853p and Antofagasta was 17.2p higher to 823p.

Across the board investors moved away from defensive stocks such as gold miners and utilities and into more risky options. Fresnillo was down 18.4p to 793.6p, United Utilities lost 8.8p to 826p and Severn Trent was off 19p to 2059p and National Grid fell 7.1p to 815p.

The defence sector was also on the up after United Technologies and Raytheon in the US agreed to join forces to create an aerospace and defence giant.

Many in the industry now expect a shake-up in London-listed defence companies and other possible mergers.

BAE Systems was up 9p to 476p and Meggitt climbed 9.2p to 511p. Further down the market Qinetiq lifted by 0.2p to 286p.