Judge Blocks Coach Owner Tapestry's $8.5 Billion Purchase of Capri, Michael Kors Parent

Oct 24, 2024, 08:16 PM

A federal judge has blocked Tapestry Inc.'s planned $8.5 billion acquisition of Capri Holdings Limited, marking a significant victory for the Federal Trade Commission and its Chair Lina Khan in their efforts to prevent consolidation in the luxury goods market. The court granted the FTC's preliminary injunction, agreeing with the argument that 'accessible-luxury handbags are distinct from mass market and true luxury,' and that the merger would reduce competition in this specific segment. Tapestry, owner of Coach, and Capri, which owns Michael Kors, Versace, and Jimmy Choo, had aimed to combine their brands. Following the ruling, Capri's shares plunged 51% in after-hours trading, while Tapestry's shares rose 14%.