---
title: "US FTC's bid to block Tapestry-Capri merger goes to trial"
description: "The U.S. Federal Trade Commission (FTC) will start a trial to block Tapestry's $8.5 billion merger with Capri Holdings, arguing it would harm competition in the 'accessible luxury' handbag market. The"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/213817553.md"
published_at: "2024-09-09T10:00:00.000Z"
---

# US FTC's bid to block Tapestry-Capri merger goes to trial

> The U.S. Federal Trade Commission (FTC) will start a trial to block Tapestry's $8.5 billion merger with Capri Holdings, arguing it would harm competition in the 'accessible luxury' handbag market. The FTC claims the merger would eliminate direct competition between Tapestry's Coach and Kate Spade brands and Capri's Michael Kors brand, negatively affecting prices and consumer choices. Tapestry disputes this, stating the handbag market is competitive and fragmented. The trial, overseen by Judge Jennifer Rochon, is expected to last a week and a half.

By Siddharth Cavale

NEW YORK, Sept 9 (Reuters) - The U.S. Federal Trade Commission will urge a federal judge in New York to block Tapestry’s (TPR.N) $8.5 billion merger with rival handbag maker Capri Holdings (CPRI.N) at a trial beginning on Monday, arguing it will eliminate fierce competition in the market for “accessible luxury.”

The FTC argues the merger announced in August 2023 would eliminate head-to-head competition between Tapestry’s Coach and Kate Spade brands and Capri’s Michael Kors’ brands, which has resulted in better prices, discounts and promotions for consumers and wages and workplace benefits for employees.

The deal would also give Tapestry a dominant share of the “accessible luxury” handbag market, a term coined by Tapestry to describe quality leather and craftsmanship handbags at an affordable price, the FTC said in its April lawsuit.

Tapestry, in response, argues that the FTC’s analysis misunderstands the handbag marketplace and the way consumers shop, and that “accessible luxury” is a notional concept. The U.S. handbag market, they say, is highly fragmented and competitive with low barriers to entry and fickle consumer tastes.

The FTC has sued to block several mergers over the past year, making for a busy schedule.

The antitrust regulator is currently fighting to block supermarket chain Kroger’s (KR.N) acquisition of Albertsons (ACI.N) in a federal court in Portland, Oregon and has also sued to block the $4 billion acquisition of Mattress Firm by mattress manufacturer Tempur Sealy International (TPX.N) .

Monday’s trial, overseen by District Court Judge Jennifer Rochon for the Southern District of New York, is expected to last for a week and a half.

The brands are likely to call Jeff Gennette, the former CEO of Macy’s, to testify about the range of handbag choices available to shoppers, while the FTC is expected to offer evidence about the physical similarities between each company’s bags and how Americans respond to changes in handbag prices.

The trial follows the merger’s approval by antitrust regulators in Japan and the European Union earlier this year.

### Related Stocks

- [CPRI.US - Capri](https://longbridge.com/en/quote/CPRI.US.md)
- [TPR.US - Tapestry](https://longbridge.com/en/quote/TPR.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Michael Kors brings 'New York chic' to NY Fashion Week with latest collection | Michael Kors showcased its fall/winter collection at New York Fashion Week, celebrating its 45th anniversary. The show f | [Link](https://longbridge.com/en/news/275839443.md) |
| AI is now part of Coach and Kate Spade designers' workflow | AI is now part of Coach and Kate Spade designers' workflow | [Link](https://longbridge.com/en/news/275077217.md) |
| What Is Tapestry, Inc.'s (NYSE:TPR) Share Price Doing? | Tapestry, Inc. (NYSE:TPR) shares have risen 31% recently, reaching a yearly high. The stock is currently valued about 6. | [Link](https://longbridge.com/en/news/271429064.md) |
| Research Alert: CFRA Raises Opinion On Shares Of Capri Holdings To Buy From Sell | CFRA has upgraded its opinion on Capri Holdings (CPRI) from Sell to Buy, raising the 12-month price target by $10 to $26 | [Link](https://longbridge.com/en/news/274698259.md) |
| Research Alert: CFRA Lowers Opinion On Shares Of Tapestry, Inc. To Sell From Hold | CFRA has downgraded its opinion on Tapestry, Inc. shares from Hold to Sell, maintaining a 12-month price target of $110. | [Link](https://longbridge.com/en/news/271553401.md) |

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
