A New York judge has temporarily halted the merger between Tapestry and Capri Holdings, citing potential harm to competition in the affordable luxury market. The proposed $8.5 billion deal, intended to create an "American LVMH," would have brought together Tapestry’s brands—Coach, Kate Spade, and Stuart Weitzman—with Capri’s portfolio, including Versace, Jimmy Choo, and Michael Kors.
The Federal Trade Commission (FTC) argued the merger would reduce competition, particularly in the accessible luxury handbag market, and could lead to higher prices, reduced innovation, and adverse effects on employee wages and benefits. U.S. District Judge Jennifer L. Rochon noted the "loss of head-to-head competition" as a concern.
Tapestry expressed disappointment and announced plans to appeal, arguing the deal would ultimately benefit consumers. Capri also intends to challenge the ruling.