Capri Holdings Limited

Value for money matters, even at high-end brands. This week, Mulberry joined Burberry and Capri in admitting rampant price inflation has contributed to a collapse in demand. Will others follow suit?

Without Tapestry, Capri Holdings has a tough road ahead to return its biggest brand to growth.

The $8.5 billion deal is off after the US Federal Trade Commission successfully blocked it in court. In announcing the termination, the Coach-owner said it would buy back stock, while Capri outlined a turnaround plan that includes closing some Michael Kors stores.

The dream of creating an American answer to LVMH and Kering faced a major setback this week after a federal judge championed the Federal Trade Commission’s narrow definition of the sub-luxury handbag market.

The FTC argued at an eight-day trial in New York that the merger would eliminate fierce head-to-head competition between the top two US handbag makers.

US antitrust enforcers face a pivotal moment on Monday as a federal judge hears closing arguments in their bid to block Tapestry Inc.’s $8.5 billion merger with Capri Holdings Ltd., a decision that could significantly impact hedge funds and investors banking on the deal’s outcome.

Michael Kors testified about the nature of the competitive landscape of the handbag market, as the FTC scrutinises Tapestry’s $8.5 billion acquisition of Capri Holdings.

Hours before its runway show during New York Fashion Week on Monday, Coach’s parent company, Tapestry, faced off with the FTC to prove its $8 billion acquisition of Michael Kors’ owner Capri isn’t anti-competitive.

This week, Coach owner Tapestry reports full-year results amid a slowing US economy and stalled takeover bid for Michael Kors parent Capri.

Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.