The Tapestry group has announced that it will no longer proceed with its takeover of Capri Holding, which has been blocked by the American courts. A double whammy for Capri Holdings, owner of Jimmy Choo, Michael Kors and Versace, which reported a sharp fall in sales and disappointing profits in the second quarter.
Bad times for Capri Holdings.
Not only is the owner of Jimmy Choo, Michael Kors and Versace definitively blocked in its bid to merge with the Tapestry group, but it has also just unveiled a very disappointing performance for the second quarter of the 2024-2025 financial year, which ended on September 28.
On November 14,Capri and Tapestry announced that they had decided that “terminating the merger agreement at this stage is in the best interests of both companies, given that the outcome of the legal proceedings is uncertain and unlikely to be resolved before the deadline of February 10, 2025”.
Capri’s plan to merge with its competitor and compatriot Tapestry (Coach, Kate Spade, Stuart Weitzman), initiated by an agreement in August 2023, has thus been abandoned. On October 24, a federal judge in Manhattan blocked the acquisition by Tapestry. She followed the advice of the U.S. Federal Trade Commission (FTC), which ruled that such a merger would be an obstacle to competition in the accessible luxury bag segment.
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Read also > Proposed Capri-Tapestry merger blocked by federal judge
Featured Photos: © Tapestry
