Pedestrians walk past the Coach store and the Michael Kors store.
Scott Olson | Getty Images
A federal judge is blocked Carpet buy back Capri on the following Thursday a short test last month in New York.
In her order, Judge Jennifer Rochon granted the Federal Trade Commission’s request for a preliminary injunction blocking the proposed merger, which would marry America’s two largest luxury houses and place six luxury brands in the United States. page under one company: Tapestry’s Coach, Kate Spade and Stuart Weitzman with Capri’s. Versace, Jimmy Choo and Michael Kors.
Shares of Tapestry rose 10% after the order was placed while Capri shares fell about 50%.
Representatives for Tapestry and Capri did not immediately respond to requests for comment.
The reason behind Rochon’s order was not immediately clear. The detailed opinion has been sealed and is currently not publicly accessible.
Old rivals and long-time rivals announced The deal is worth 8.5 billion USD over a year ago but the Federal Trade Commission sued to block it in April and seeks a preliminary injunction to terminate the agreement.
The FTC argued that if the companies merged, it would harm consumers by making the market for affordable handbags more difficult to access and would cost employees wages and benefits. less. Tapestry argues that consumers would be better off if it merged with Capri because it would allow it to keep up with trends faster, offer better products and reach more customers.
The decision comes as consumers balk at the high prices of food, clothing and other goods after years of soaring 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 sectors.
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