FTC sues to block Coach parent Tapestry's acquisition of Capri Holdings
The FTC sued to block the $8.5 billion acquisition of Capri Holdings by Coach and Kate Spade's parent company, Tapestry.
Tapestry's Coach, Kate Spade and Stuart Weitzman and Capri's Versace, Jimmy Choo and Michael Kors.
The U.S. Federal Trade Commission on Monday sued to block the $8.5 billion acquisition of Capri Holdings by Coach and Kate Spade's parent company, Tapestry.
The move by regulators brings at least a temporary halt to a deal that would marry two major names in American luxury retail and put six fashion brands under a single company:
Tapestry's Coach, Kate Spade and Stuart Weitzman and Capri's Versace, Jimmy Choo and Michael Kors. With the transaction, the luxury brands could be poised to better compete with European luxury names
Tapestry argued the federal agency "fundamentally misunderstands both the marketplace and the way in which consumers shop."
In a statement, the company said it must win the business of consumers who increasingly shop across brands, channels and price points.
The bottom line is that Tapestry and Capri face competitive pressures from both lower- and higher-priced products," it said.
In bringing this case, the FTC has chosen to ignore the reality of today's dynamic and expanding $200 billion global luxury industry."