Maker of Coach handbags calls off merger with company that produces Michael Kors accessories

Fashion company Tapestry says it’s terminating its proposed merger with Capri because the two luxury groups don’t expect to overcome an antitrust challenge within an acceptable time frame. The companies agreed in August 2023 to a $8.5 billion deal that would have united them. Capri makes Versace, Jimmy Choo and Michael Kors shoes, handbags and accessories. Tapestry produces the same products under the Coach, Kate Spade New York, and Stuart Weitzman brands. The Federal Trade Commission sued in April to block the deal, saying it would eliminate direct competition between the companies’ brands in the so-called affordable luxury handbag arena.