The Federal Trade Commission (FTC) on Monday sued to stop another multi-billion dollar merger on anticompetitive grounds, this time between fashion giants Tapestry, Inc. and Capri Holdings Limited.
Tapestry, owner of brands Coach and Kate Spade, sought to acquire Capri, owner of brands Michael Kors and Versace, in a $8.5 billion deal first announced in August 2023, according to an announcement from Capri. The FTC argues that the deal would eliminate direct competition between the brands and would give Tapestry too dominant a share of the “accessible luxury” handbag market. (RELATED: Biden Vowed To Protect American Steel — But Another Effort Of His Could Destroy It)
“With the goal to become a serial acquirer, Tapestry seeks to acquire Capri to further entrench its stronghold in the fashion industry,” Henry Liu, director of the Bureau of Competition at the FTC, said in the…
