1 month ago
The Federal Trade Commission is suing to artifact Tapestry's $8.5 cardinal acquisition of Capri Holdings, saying nan woody would harm consumers by reducing title and raising prices successful nan affordable luxury sector.
Monday's national tribunal filing by nan FTC challenges nan projected woody that would person 1 institution controlling six manner brands: Tapestry's Coach, Kate Spade and Stuart Weitzman and Capri's Michael Kors, Versace and Jimmy Choo.
The acquisition could person a antagonistic effect connected nan millions of American shoppers who now use from nan head-to-head rivalry betwixt Tapestry and Capri, arsenic good arsenic connected nan astir 33,000 workers employed by some companies worldwide, nan FTC stated.
"With nan extremity to go a serial acquirer, Tapestry seeks to get Capri to further entrench its stronghold successful nan manner industry," Henry Liu, head of nan FTC's Bureau of Competition, stated. "This woody threatens to deprive consumers of nan title for affordable handbags, while hourly workers guidelines to suffer nan benefits of higher wages and much favorable workplace conditions."
Tapestry rejected nan FTC's stance, saying nan agency does not understand either nan marketplace aliases nan measurement group shop.
"The bottommost statement is that Tapestry and Capri look competitory pressures from some lower- and higher-priced products. In bringing this case, nan FTC has chosen to disregard nan reality of today's move and expanding $200 cardinal world luxury industry," nan institution said successful a statement.
Tapestry said it would get Capri successful August of 2023. The companies together generated much than $12 cardinal successful income successful 2022.
Kate Gibson
Kate Gibson is simply a newsman for CBS MoneyWatch successful New York.
