FTC Sues to Block Tapestry's $8.5 Billion Capri Deal, Citing Competition Concerns

Apr 22, 2024, 09:07 PM

The U.S. Federal Trade Commission (FTC) has initiated legal action to block Tapestry Inc.'s proposed $8.5 billion acquisition of Capri Holdings Ltd., which owns luxury brands like Michael Kors and Jimmy Choo. Filed on Monday, the lawsuit by the FTC argues that the merger between Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, and Capri would significantly reduce competition in the luxury goods market, particularly in the 'affordable luxury' sector. This move by the FTC underscores concerns about maintaining competitive market conditions in the luxury fashion industry.