Owning handbag companies like Kate Spade and Coach is Tapestry.
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.
