Federal Trade Commission sues to block Tapestry's $8.5B acquisition of Capri
The Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd
NEW YORK — The Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd., saying that the deal would eliminate direct head-to-head competition between the fashion companies' brands like Coach and Michael Kors in the so-called affordable luxury handbag arena.
The agency also said Monday that the deal, a nnounced in August 2023, threatens to eliminate the incentive for the two companies to vie for employees and could depress employees’ wages and workplace benefits. The combined Tapestry and Capri would employ roughly 33,000 people worldwide, the agency said.
“With the goal to become a serial acquirer, Tapestry seeks to acquire Capri to further entrench its stronghold in the fashion industry,” said Henry Liu, director of the FTC’s bureau of competition in a statement.
The move is the latest by the FTC to take a more aggressive position on antitrust issues.
In February, the FTC sued to block the $24.6 billion merger between grocery giants Kroger and Albertson's, saying the lack of competition would lead to higher grocery prices and lower wages for workers. The supermarket chains said Monday they will sell more of their stores in an effort to quell the federal government’s concerns.
Kroger and Albertsons announced their planned merger in October 2022. The companies said it’s necessary so they can better compete with Walmart, Amazon and other big rivals.
Tapestry's and Capri's portfolio of brands cover a wide array of items from clothing to eyewear to shoes. Tapestry has been on an acquisition binge for the past several years, and already owns Kate Spade New York, Stuart
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