By Siddharth Cavale NEW YORK, Sept 9 - The U.S. Federal Trade Commission urged a federal judge in New York to block Tapestry's $8.
5 billion merger with rival handbag maker Capri Holdings at a trial on Monday, arguing it will eliminate fierce 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. The deal would also give Tapestry a dominant share of the "accessible luxury" handbag market, controlling over 50% of it once the deal is completed.
The regulator defined the "accessible luxury" market as handbags sold between $100 and below $1,000, which forms most of Coach and Kors' lines. FTC Chief Trial Counsel Nicole Lindquist told U.S.
District Judge Jennifer Rochon in a packed courtroom that the brunt of a merger would be borne by "the working and middle class women of America." In its questioning of Capri CEO John Idol, the FTC showed evidence of emails between Idol and his deputies, including Jaryn Bloom, president of North America retail for Capri's Michael Kors brand, asking how Coach's outlets were keeping prices down. "Look at these prices!" Idol wrote in the emails, urging his deputies to come up with better designs and solutions to compete against Coach.
In another email produced by.