New York-based accessory and footwear group Tapestry and Capri Holdings have agreed not to go ahead with a proposed merger.

Tapestry, whose brands are Coach, Stuart Weitzman and Kate Spade, announced in August 2023 that it wanted to acquire Capri Holdings, whose brands are are Versace, Michael Kors and Jimmy Choo. However, the Federal Trade Commission (FTC) the competition authorities in the US, moved to block the deal because, it said, it would be bad for consumers.

At a court hearing in late October, the FTC secured an injunction, stopping the merger from going ahead.

Initially, Tapestry said it would appeal the court’s decision, but has now concluded that it cannot complete this appeal successfully before its original offer for Capri Holdings expires on February 10.

Tapestry has agreed to reimburse expenses Capri Holdings has incurred in connection with the transaction. It said this amounted to approximately $45 million. It said it did not now foresee any acquisition in the near term and would instead concentrate on growing its three existing brands.