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

Tapestry and Capri Holdings person revenge their announcement to jointly entreaty nan determination by a U.S. District judge to temporarily halt nan merger betwixt nan makers of Coach and Michael Kors handbags, according to a tribunal filing Monday

NEW YORK -- Tapestry Inc. and Capri Holdings Ltd. person revenge their announcement to jointly entreaty nan determination by a U.S. District judge to temporarily halt nan merger betwixt nan makers of Coach and Michael Kors handbags, according to a tribunal filing Monday.

In her ruling Thursday, U.S. District Judge Jennifer Rochon noted that Tapestry and Capri are “close competitors” and that nan merger would consequence successful “the nonaccomplishment of head-to-head competition” and raise prices for shoppers.

The ruling came six months aft nan Federal Trade Commission sued to artifact Tapestry’s $8.5 cardinal acquisition of Capri, saying that nan woody would destruct nonstop title betwixt nan manner companies’ brands successful nan alleged affordable luxury handbag arena.

Tapestry has been connected an acquisition binge for nan past respective years, and already owns Kate Spade New York, Stuart Weitzman and Coach. Capri owns nan Versace, Michael Kors and Jimmy Choo brands.

The agency besides said that nan woody announced successful August 2023 threatens to destruct nan inducement for nan 2 companies to vie for labor and could depress employees’ wages and workplace benefits. The mixed Tapestry and Capri would employment astir 33,000 group worldwide, nan agency said.

Tapestry said successful an emailed connection to The Associated Press connected Thursday that nan determination granting nan FTC’s petition for a preliminary injunction was “disappointing” and “incorrect connected nan rule and nan facts.”