The Federal Trade Commission had opposed the deal, saying it would raise handbag prices
Consumers would have less cash in their purses if a proposed Coach-Michael Kors merger went through, the Federal Trade Commission charged. And now a federal judge has agreed, issuing a preliminary injunction that blocks the deal pending further action.
The deal -- technically between parent companies Tapesty and Capri -- is set to be heard by an FTC administrative court on Dec. 9, but companies often abandon deals when a judge issues an injunction.
Under the $8.5 billion deal, Tapestry would have acquired Capri, bringing such high-end brands as Coach, Kate Spaade, Michael Kors, Versace and Jimmy Choo under one umbrella.
Capri has tried to turn around the Michael Kors brand for several years before agreeing to sell itself to Tapestry. Both sides said they would appeal the ruling by New York U.S. District Court Judge Jennifer Rochon.
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Posted: 2024-10-25 15:02:02