Victory for FTC: Blocked $8.5 Billion Tapestry-Capri Merger

A U.S. judge blocked the $8.5 billion merger between Tapestry and Capri, siding with the FTC. The merger was deemed anti-competitive and potentially harmful to consumer prices. This decision is significant for the Biden administration and the handbag industry, which rarely sees such challenges.

Tapestry's proposed $8.5 billion merger with Capri was halted by a U.S. judge on Thursday, marking a significant win for the Federal Trade Commission. This rare challenge in the fashion industry bolsters the FTC's concerns about anti-competitive practices.

During an eight-day New York trial, the FTC argued that the merger would erode essential competition between two top U.S. handbag manufacturers, leading to potential price increases detrimental to consumers. Tapestry contended that the move was vital to competing against European brands thriving in the market.

The ruling not only disrupts plans to consolidate iconic brands like Coach, Kate Spade, and Michael Kors under one corporate umbrella, but it also arrives just ahead of key presidential elections, highlighting the administration's focus on consumer price issues.

(With inputs from agencies.)