“FTC Love Story Turns Sour, Tapestry-Capri Union Treads Shaky Ground”

“After FTC block, Tapestry-Capri deal faces uncertain future”

“New York-based fashion conglomerate Capri Holdings Ltd, whose brands include Michael Kors, Jimmy Choo and Versace, may face regulatory hurdles in its proposed acquisition of luxury group Tapestry, following Federal Trade Commission’s blocking of a similar deal last year.”

Oh, the sweet, sweet naïveté of Capri Holdings, the fashion powerhouse boasting impressive brands such as Michael Kors, Jimmy Choo, and Versace. One might think, after the Federal Trade Commission (FTC) threw a rather sizable wrench in a similar acquisition deal last year, they’d take a moment to reassess. But no, full steam ahead it seems.

The FTC, bless their hearts, aren’t exactly known for their lax approach when it comes to regulating mergers – they love to keep the competitive fire on the runway burning bright. So, while it’s cute that Capri Holdings, incorporated in New York (because where else would such optimism live?) has dreams of adding Tapestry to their fashion arsenal, it’s a road that’s seen more plot twists than a ‘Devil Wears Prada’ sequel.

The crux of the issue here is quite simple. Capri Holdings seems to live in a world where the FTC casually green-lights the bulldozing of normal competition rules to make room for mega fashion monopolies. But alas, that’s not how the world spins in reality.

It’s a riveting spectacle to watch as Capri naively approaches the regulatory lion’s den, with hopeful dreams of walking out unscathed, Tapestry bag in hand.

To be fair, this isn’t the first time Capri Holdings has played the game of M&A chicken, and come out unscathed. They’ve added Michael Kors, Jimmy Choo, and Versace to their trophy cabinet after all. But, with the FTC decidedly unpredictable in its decision-making, it’s a gambit that could result in a trip to the tailor to mend some seriously torn ambitions.

While one could argue Capri has its head lost in the clouds, a more charitable view is that they’re simply willing to roll the dice in the high-stakes world of fashion conglomerates. It will indeed be interesting to observe how the house of cards ultimately falls. Whether the future will see the marriage of Tapestry and Capri Holdings, or a high fashion fallout, only time in this unpredictable catwalk called the business world will tell.

So, stay tuned and do bring the popcorn. Watching the drama unfold between Capri Holdings, the FTC, and Tapestry promises a front-row spectacle that no fashion week can rival.

Read the original article here:

https://www.luxurydaily.com/after-ftc-block-tapestry-capri-deal-faces-uncertain-future/