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., 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, announced in August 2023, also threatens to eliminate the incentive for the two companies to compete 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.