Tapestry, Capri file notice to appeal court decision blocking their $8.5 billion merger
NEW YORK (AP) — Tapestry Inc. and Capri Holdings Ltd. have filed their notice to jointly appeal the decision by a U.S. District judge to temporarily halt the merger between the makers of Coach and Michael Kors handbags, according to a court filing Monday.
In her ruling Thursday, U.S. District Judge Jennifer Rochon noted that Tapestry and Capri are “close competitors” and that the merger would result in “the loss of head-to-head competition” and raise prices for shoppers.
The ruling came six months after the Federal Trade Commission sued to block Tapestry’s $8.5 billion acquisition of Capri, saying that the deal would eliminate direct competition between the fashion companies’ brands in the so-called affordable luxury handbag arena.
Tapestry has been on an acquisition binge for the past several years, and already owns Kate Spade New York, Stuart Weitzman and Coach. Capri owns the Versace, Michael Kors and Jimmy Choo brands.
The agency also said that the deal announced in August 2023 threatens to eliminate the incentive for the two companies to vie for employees and could depress employees’ wages and workplace benefits. The combined Tapestry and Capri would employ roughly 33,000 people worldwide, the agency said.
Tapestry said in an emailed statement to The Associated Press on Thursday that the decision granting the FTC’s request for a preliminary injunction was “disappointing” and “incorrect on the law and the facts.”
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