A court has granted a petition from the US Federal Trade Commission (FTC) to block attempts from leathergoods and footwear group Tapestry to acquire rival group Capri Holdings.

Tapestry, parent group of Coach, Kate Spade and Stuart Weitzman, first expressed its intention to acquire Capri in 2023. Capri’s brands are Michael Kors, Versace and Jimmy Choo.

In April this year, the FTC took steps to block the acquisition, which it said would have a negative effect on consumers because of a lack of competition on price, discounts and promotions, innovation, design, marketing, and advertising.

Tapestry has consistently disputed this and has argued its case in court. However, on October 24, a court in New York granted the FTC’s request for a preliminary injunction, stopping the deal from going ahead.

In response, Tapestry said the decision was disappointing. It said: “We face competitive pressures both from lower- and higher-priced products and continue to believe this transaction is pro-competitive and pro-consumer. We intend to appeal the decision, consistent with our obligations under the merger agreement.”

Image: Stuart Weitzman.