A federal judge has ruled to block a proposed merger between Coach owner Tapestry and Michael Kors owner Capri Holdings, according to CNBC. The verdict followed a brief trial in New York last month, but details of the verdict were not immediately released.
The proposed merger aims to bring together several well-known brands under one roof, including Tapestry’s Coach, Kate Spade, Stuart Weitzman, Capri’s Versace, Jimmy Choo and Michael Kors.
The Federal Trade Commission (FTC) has previously expressed concerns that the merger could have negative effects on consumers, including higher prices and reduced employee benefits. Tapestry and Capri initially announced an $8.5 billion merger plan last year, but they have faced major hurdles since the FTC filed a lawsuit seeking to block the merger.
Capri Holdings and Tapestry appeal FTC ruling
On October 24, 2024, Capri Holdings Limited, a prominent company in the global luxury fashion sector, announced its plans to file a notice of appeal with Tapestry. This decision follows a ruling by the United States District Court for the Southern District. New York has granted a preliminary injunction sought by the Federal Trade Commission to block Tapestry’s acquisition of Capri.
Capri Holdings, home to well-known brands such as Versace, Jimmy Choo and Michael Kors, emphasizes a commitment to luxury, innovation and craftsmanship. The company aims to protect its strategic interests while maintaining its commitment to providing superior products across a variety of fashion categories.
“Today’s decision granting the FTC’s request for a preliminary injunction is disappointing and we believe it is wrong on the law and the facts. Tapestry and Capri are competitive, dynamic, constantly expanding, and We operate in an industry that is highly fragmented between players and new entrants, and we face competitive pressures from both low- and high-priced products, and this transaction is both pro-competitive and competitive. We continue to believe that it is pro-consumer, and we intend to appeal this decision in accordance with our obligations under the merger agreement.”
Tapestry Statement, via Tapestry, Inc.
