Business News
FTC Sues To Block The Megamerger Of Tapestry And Capri
The Federal Trade Commission has sued to block the $8.5 billion merger between Tapestry, the parent of Coach and Kate Spade, and Capri Holdings.
This lawsuit challenges a transaction that would merge some of the most prominent American luxury fashion brands under one umbrella.
The acquisition aims to create a powerhouse that includes Tapestry's labels—Coach, Kate Spade, and Stuart Weitzman—alongside Capri's portfolio of Versace, Jimmy Choo, and Michael Kors.
"The FTC has chosen to ignore the reality of today’s dynamic and expanding $200 billion global luxury industry”
This deal would enhance the merged entity's competitive stance against major European luxury conglomerates like Burberry and LVMH's Louis Vuitton.
However, the FTC has raised concerns about potential adverse effects on consumers and employees.
The agency said Tapestry and Capri “currently compete on everything from clothing to eyewear to shoes.”
Henry Liu, director of the FTC’s Bureau of Competition, said: “With the goal to become a serial acquirer, Tapestry seeks to acquire Capri to further entrench its stronghold in the fashion industry.
... Read More