Tapestry-Capri judge lets FTC use ‘accessible luxury’ market

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 The firms’ request to antitrust enforcers to clarify their definition of “accessible luxury” handbags was denied by the federal judge presiding over the FTC’s lawsuit to stop Tapestry Inc.’s $8.5 billion acquisition of competitor Capri Holdings Ltd.


The Manhattan court judge, Jennifer L. Rochon, demonstrated her impartiality by making the ruling public during Monday’s hearing. She found that the nine pages describing the relevant market in the FTC complaint gave enough information about the potential market in which Tapestry and Capri operate. Because they felt the complaint was vague, the businesses moved to the FTC for more information.



Judge Rochon ruled that notification is the most important criterion at this time and said that the FTC has laid out many aspects of the purported relevant market.


“The FTC laid out numerous parameters of the alleged relevant market,” according to her. “At this point, notice is all that is required.”


In an effort to halt the merger, the FTC launched a lawsuit last month. Coach Kate Spade and Stuart Weitzman’s parent company, Tapestry, are in talks to buy out Capri, the owner of Michael Kors, Versace, and Jimmy Choo. In September, Judge Rochon will decide whether to block the merger or allow the FTC to continue its case in its internal court.


Judge Rochon underscored the importance of ongoing communication between the FTC and Tapestry regarding the market definition. She encouraged additional dialogue between the two sides, reassuring them that as part of the discovery process, Tapestry could ask the agency for more details, such as whether the handbags are marketed solely to women or if they also include men’s bags.


She reiterated her call for a conversation, stating, “There can be a conversation about what the appropriate parameters are,” to emphasize the need for constant communication and explanation throughout the legal processes.

Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

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