Free Trial

Tapestry, Capri file notice to appeal court decision blocking their $8.5 billion merger

A chain of the Coach brand, owned by parent company Tapestry, is seen, May 3, 2019, at the Citadel Outlets in Commerce, Calif. (AP Photo/Richard Vogel, File)

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.”

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

10 Best Cheap Stocks to Buy Now Cover

MarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued. Enter your email address and below to see which companies made the list.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

7 Cybersecurity Stocks Outperforming the Market Right Now
Markets in Rally Mode: Will Earnings Keep It Going?
3 Tech Stocks to Buy Now—And 3 You’ll Regret Keeping

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines