The Federal Trade Commission is preparing to sue to block a luxury fashion mega merger, Tapestry’s $8.5 billion takeover of Capri Holdings, two people with knowledge of the matter said.
The F.T.C.’s five commissioners are expected to meet next week to discuss the case, a move that could precede a formal vote on whether to file a lawsuit, the people said.
The people, who were not authorized to discuss the deliberations, said that it was still possible that the agency could opt not to sue.
Monopoly cases in the fashion industry are rare, because there is no shortage of new labels looking to undercut legacy brands.
“It is the paradigmatic part of the economy where there is ample competition,” said Howard Hogan, the chair of the fashion, retail and consumer practice at the law firm Gibson Dunn.
Persons:
’, Kate Spade, Capri’s Versace, Michael Kors, Louis Vuitton’s, ”, Howard Hogan, Gibson Dunn
Organizations:
Federal Trade Commission, Capri Holdings, Gucci, Monopoly
Locations:
American