Pedestrians walked past a Coach store and a Michael Kors store.
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A federal judge is blocked tapestry acquisition capri Thursday after a brief trial in New York last month.
In her order, Judge Jennifer Rochon granted the Federal Trade Commission’s motion for a preliminary injunction to block the proposed merger that would marry up two of the largest luxury brands in the United States and combine six fashion brands into one company: Tapestry’s Coach, Kate Spade and Stuart Weitzman with Capri’s Versace, Jimmy Choo and Michael Kors.
After the order was filed, Tapestry’s shares soared 14%, while Capri’s shares plunged more than 52%.
Representatives for Tapestry did not immediately respond to a request for comment.
Rochon’s reasons for issuing the order were unclear. Detailed comments have been submitted under seal and are currently not available to the public.
The two former rivals and longtime rivals announced the $8.5 billion deal more than a year ago, but the Federal Trade Commission (FTC) filed a lawsuit in April to block the deal, seeking a preliminary injunction to block it. .
The Federal Trade Commission believes that if the two companies merge, it will make the affordable handbag market more difficult to enter, harm the interests of consumers, and make employees’ wages and benefits worse. Tapestry believes consumers will be better off if it merges with Capri, as it will allow them to keep up with trends faster, offer better products and attract more customers.
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