Despite facing legal action from the US Federal Trade Commission (FTC) over allegations of market dominance, the parent company of luxury fashion brands Coach and Kate Spade, Tapestry, Inc., says it has “full confidence” in its agreement to purchase rival Capri Holdings Limited.
In an attempt to thwart the planned transaction, the FTC has authorised a lawsuit in federal court and filed an administrative complaint, claiming that Tapestry’s purchase of Capri will “eliminate fierce competition between the two companies.”
Henry Liu, the director of the Federal Trade Commission’s Bureau of Competition, asserted that the agreement “threatens” to eliminate competition for reasonably priced handbags, while hourly workers will lose out on increased pay and better working conditions.
According to the FTC, millions of American consumers stand to lose out from the advantages of Tapestry and Capri’s head-to-head rivalry in terms of price, discounts and promotions, innovation, design, marketing, and advertising. This is because of the proposed merger.
It further stated that the agreement might have a negative impact on workers’ pay and benefits and could undermine the incentive for the two businesses to compete for talent. The US regulatory body stated that the merged company will have about 33,000 workers worldwide after the transaction.
Bharat Tex Special Report 2026 
