US watchdog files lawsuit to stop takeover of $8.5 handbags

Owning handbag companies like Kate Spade and Coach is Tapestry.

US watchdog files lawsuit to stop takeover of $8.5 handbags
US watchdog files lawsuit to stop takeover of $8.5 handbags
The $8.5 billion (£6.9 billion) buyout of rival Capri by fashion accessory giant Tapestry has been challenged by the US Competition Commission.

Michael Kors is one of Capri’s brands, and Coach and Kate Spade are among the handbag manufacturers owned by Tapestry.

If approved, the transaction will end direct head-to-head competition between the Tapestry and Capri brands, according to the US Federal Trade Commission (FTC).

“The FTC fundamentally misunderstands both the marketplace and the way that consumers shop,” Tapestry said.

The companies together employ over 33,000 people worldwide, but the FTC claimed the acquisition would result in lower pay and benefits for them.

Coach and Kate Spade are well-known for their “accessible luxury” handbags, which are reasonably priced, well-made items with premium leather and craftsmanship.

In August, Tapestry made a bid to purchase Capri, aiming to establish a US fashion conglomerate capable of taking on larger European rivals like Chanel, Hermes, and LVMH, the parent company of Louis Vuitton.

Use your ← → (arrow) keys to browse

See also  How, according to Jon Torres, to use your challenges to grow into a better version of yourself

sikapa

Next Post

UK businesses fear that a US TikTok ban would be "devastating."

Thu Apr 25 , 2024
Online merchants are cautioning that a ban on TikTok in the US may have a “potentially devastating” effect on certain UK companies. A bill that President Biden signed into law gives Byte Dance, the Chinese company that owns TikTok, nine months to sell its share in the app or risk […]
UK businesses fear that a US TikTok ban would be "devastating."

You May Like