Tapestry keeps its pulse in the US and urges the Government to study the acquisition of Capri

Tapestry keeps its pulse in the US and urges the Government to study the acquisition of Capri
Tapestry keeps its pulse in the US and urges the Government to study the acquisition of Capri

Tapestry, waiting for the US Government to unblock the veto on the acquisition of Capri. The luxury giant continues to wait for the definition of the accessible luxury market, necessary for the acquisition of Capri to be approved. Judge Jennifer Rochon, who is overseeing the case in Manhattan federal court, rejected Tapestry’s request to force the government to reveal its definition of the market now that the court calendar has been accelerated to unlock the Capri takeover. Additionally, he ruled that the market parameters, which Tapestry would dominate if the deal goes through, can be officially determined in the normal course of the case process.

As has been collected WWDTapestry’s lawyer, Al Pfeiffer (of the firm Latham & Watkins), argued in a video conference that ““The level of vagueness that the federal court is engaging in is hindering our ability to defend ourselves.”.

The person in charge also argued that the luxury company does not know “the most basic aspects of how they are framing the market, much less defining it precisely.” The lawyer urges the US Government to explain how it is valuing the market and wonders if it is defined by the price range or by competitors’ brands.

However, Judge Rochon ruled that Tapestry had not met the legal standard to force the government to define the market.noting that the lawsuit “is not so unintelligible or confusing that defendants do not receive sufficient information about the allegations made against them.”

Tapestry plans to collect data on how the market works to present to the judge

The American conglomerate that operates through brands such as Coach, Kate Spade and Stuart Weitzman, went to court after the US Federal Trade Commission (FTC) filed a lawsuit to block the acquisition of the Capri groupin a transaction valued at $8.5 billion that was first agreed upon in August 2023.

FTC lawyers argued that the merger between Tapestry and Capri, which owns Michael Kors, Versace and Jimmy Choo, would “eliminate fierce direct competition” in the market in which both companies compete. An alliance would lead to an “undue concentration” in the affordable luxury market, according to FTC attorney Abby Dennis.

Lawyers for both companies rejected the FTC’s accusations and reiterated that the handbag market in the United States is competitive.telling Rochon that they were not clear how the agency was defining the affordable luxury market and requested further clarifying details from the FTC.

Tapestry’s lawyers said they planned to subpoena competitors in the U.S. handbag industry to gather details about how the market works to present to the judge.

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