Pedestrians walk past the Coach and Michael Kors stores.
Scott Olson | Getty Images
federal judge blocks tapestry acquisition of capri The case was held Thursday after a brief trial in New York last month.
In her order, Judge Jennifer Rochon said she would merge America’s two largest luxury brands and bring six fashion brands under one company: Tapestry Coach, Kate Spade, Stuart Weitzman and Capri. Granted the Federal Trade Commission’s motion for a preliminary injunction to block the proposed merger. Versace, Jimmy Choo, Michael Kors.
Tapestry’s stock rose 10% after the order, while Capri’s stock fell about 50%.
Representatives for Tapestry and Capri did not respond to requests for comment.
The reason behind Mr. Rochon’s order was not immediately clear. Detailed comments have been filed under seal and are not currently available to the public.
The two companies, former rivals and longtime competitors, announced the $8.5 billion pact more than a year ago, but the Federal Trade Commission filed a lawsuit in April seeking to block the agreement. sought an injunction.
The FTC argued that a merger between the two companies would reduce the availability of affordable handbags, harm consumers, and reduce employee pay and benefits. Tapestry argued that consumers would be better off with Capri because it would be able to keep up with trends faster, offer better products, and reach more customers.
The decision comes as consumers balk at high prices for food, clothing and other goods after years of high inflation. The Biden administration and Democratic presidential nominee Vice President Kamala Harris have called for using federal powers to maintain competition and keep prices low.
Under President Joe Biden, the FTC has moved to block mergers and acquisitions in the grocery, technology and apparel sectors.
This is breaking news. Please refresh to check for updates.
