Capri Holdings Limited and Tapestry Inc. have reached an agreement to terminate their merger arrangement, Capri announced in a press release. The news comes after a judge blocked the multi-billion dollar deal.

Capri and Tapestry have said they are finally pulling the plug on their multi-billion dollar deal "in the best interest of both companies". It is unlikely that the required approvals from US regulators will be met before the merger agreement deadline of February 10, 2025.

John D. Idol, chairman and chief executive officer of Capri, said in the press release: “With the termination of the merger agreement, we now focus on the future of Capri and our three iconic luxury houses. Looking ahead, I remain confident in Capri’s long-term growth potential for several reasons.

“First, we have an incredible portfolio of luxury houses, each with their own rich heritage, exclusive DNA and strong consumer loyalty. Second, we have a solid distribution network to build on. With over 1,200 direct-operated luxury stores worldwide, combined with our robust digital platform, we have a strong framework for the future.

"Additionally, our extensive wholesale network is a key channel to reach consumers in areas where we do not have our own stores. Third, we have the leadership team, design talent and global workforce of 15,000 employees to successfully execute our initiatives. Fourth, we have the financial strength to execute our strategies.”

Capri Holdings and Tapestry merger deal ends up in the trash

Initially, Tapestry proposed to acquire Capri for 8.5 billion dollars, yet concerns were raised due to the two American companies both being active in the luxury segment. The acquisition would unite the brands Coach, Kate Spade, Stuart Weitzman, Versace, Jimmy Choo and Michael Kors under one roof, with many of these brands particularly active in the handbag segment.

Despite gaining approval for the merger in the EU and Japan, US market watchdog, the Federal Trade Commission (FTC), brought a lawsuit against the duo, citing a potential negative impact on market forces and fair competition if they were to merge. A case was then started, after which the American judge blocked the deal.

This article originally appeared on FashionUnited.NL. It was translated to English using an AI tool called Genesis and edited by Rachel Douglass..