People walk past the Coach store and the Michael Kors store.
Scott Olson Getty Images
A federal judge blocked it His tapestry acquired from Capri Friday after a short trial last month in New York.
In her order, Judge Jennifer Rochon granted the Federal Trade Commission’s motion for a preliminary injunction to block the proposed merger, which would marry the two largest luxury houses in America and put six fashion brands in one company: Tapestry’s Coach, Kate Spade and Stuart Weitzman with Capri’s. Versace, Jimmy Choo and Michael Kors.
Tapestry stock rose 10% after the order was filed while Capri fell about 50%.
Representatives for Tapestry and Capri did not immediately return requests for comment.
Rochon’s reasoning behind the message was not immediately clear. The detailed opinion was filed under seal and is not currently publicly accessible.
The former rival and longtime competitor announced the $8.5 billion deal more than a year ago but the Federal Trade Commission sued to block it in April and sought a preliminary injunction to end the agreement.
The FTC argued that if the companies merged, it would harm consumers by making the market for affordable handbags less accessible and would leave employees with worse pay and benefits. Tapestry says consumers will be better off joining Capri as it will allow them to follow trends faster, offer better products and gain more customers.
The decision comes as consumers reject high prices for food, clothing and other goods following high inflation. The Biden administration, and Democratic presidential candidate Vice President Kamala Harris, have pushed the federal government to use its power to maintain competition and help keep prices low.
The FTC under President Joe Biden has moved to block mergers and acquisitions in the grocery, technology and apparel spaces.
This is new news. Please refresh for updates.
