Tapestry Coach Store

Tapestry Must Wait For FTC Definition Of ‘Accessible Luxury’

FTC’s Attempt to Halt Tapestry’s Acquisition of Capri Holdings

The Federal Trade Commission is pushing to prevent Tapestry Inc.’s $8.5 billion purchase of Capri Holdings, which will clarify the definition of “accessible luxury” handbags.

Judge Jennifer Rochon in Manhattan federal court denied Tapestry’s request for the FTC to reveal the market definition immediately due to an expedited court schedule, ruling for it to be determined during the case’s discovery process.

Tapestry’s attorney, Al Pfeiffer, expressed concerns about the FTC’s vagueness in defining the market, but Rochon decided that Tapestry did not meet the legal standard to force disclosure.

During the hearing, the FTC clarified the definition of a handbag and mentioned that men’s products might be included in the market definition.

If Tapestry succeeds in acquiring Capri Holdings, it will merge brands like Coach, Kate Spade, and Stuart Weitzman with Michael Kors, Versace, and Jimmy Choo, despite the FTC’s challenge impacting the market.