US tries to stop merger of handbag brands

On hold: A Michael Kors store in California. US antitrust enforcers have filed a lawsuit to block handbag maker Tapestry Inc’s US$8.5bil takeover of rival Capri. — Bloomberg

NEW YORK: The US Federal Trade Commission (FTC) urged a federal judge in New York to block Tapestry Inc’s US$8.5bil merger with rival handbag maker Capri Holdings Ltd at a trial on Monday, arguing it will eliminate fierce head-to-head 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.