AmplifyME’s Post

Fashion M&A Update: Tapestry-Capri merger - the FTC meets this week to consider if the acquisition could be in violation of anti-trust regulations. My bold prediction as a fashion lawyer (full disclosure- not an antitrust lawyer) is that there is no way this deal gets blocked. The fashion industry covers so many product categories and offers consumers so many brands, it’s extremely difficult to see how this union would be anti competitive. If anything this merger is necessary for Tapestry-Capri to compete against luxury giants LVMH and Kering. #thefashionlawyer https://lnkd.in/ea9d34SC

The FTC has been fairly active on the anti-trust front. Here's another deal under scrutiny: Tapestry (owner of Coach, Kate Spade, and Stuart Weitzman) acquiring the assets of Capri Holding (owner of Michael Kors, Versace, and Jimmy Choo). I question the validity of holding up this transaction when you consider the scope and depth of companies like Authentic Brands (Brooks Brothers, Barneys, Judith Leiber, Neil Lane, Vince, Ted Baker, Vince Camuto and many more) and Kering (although technically a French company, they own Gucci, Saint Laurent, McQueen, Balenciaga, Bottega Veneta and many more). #TheRetailLawyer #licensing #retail #retailevolution #attorneyadvertisement https://lnkd.in/e8DhvUGQ

Curtis partners Daniela Della Rosa and Don Hawthorne were both quoted in a Fortune magazine article “Accessible luxury owners of Coach and Versace snap at FTC after it sues to block $8.5 billion merger” that discussed the halt by the FTC to a proposed merger of the two fashion brands Tapestry (company behind Coach, Kate Spade, and Stuart Weitzman) and Capri (company behind Michael Kors, Versace, and Jimmy Choo) on antitrust grounds. For more information and the full article, please use the link below. #Fortune #LuxuryFashionLaw #AntitrustLaw #AccessibleLuxury

As many of you know, I love a nice handbag! Today, the Federal Trade Commission sued to block the merger of two premium handbag makers, saying the merger would give the combined firm too much power in the market for “accessible luxury handbags”. Tapestry, the owner of Coach, struck a deal in August to buy Capri Holdings Limited, which owns Michael Kors. A combination would put multiple brands, including kate spade new york, Stuart Weitzman, Jimmy Choo and Versace under one roof and rival to European luxury-goods conglomerates. The combined company would have more than $12 billion in annual sales and serve a range of shoppers, from budget-conscious, aspirational luxury customers to the upper echelons of British and Italian fashion. The deal’s future hinges on the definition of the market that Tapestry and Capri serve. Coach and Michael Kors together had a 17% share of the North American handbag market in 2022, according to a report from Bernstein, citing Euromonitor data. Their share rose to 26% of the luxury bag market and rose even further—to 53%—for so-called affordable luxury bags, which can be priced at hundreds of dollars apiece. Market share (and definition of the market) as well as impact on employees/wages are a key focus for the FTC and U.S. Department of Justice these days. Here is what is going on: Jonathan Katner (Anti-trust Division AAG) and Lina Kahn (FTC Chair) are part of a progressive movement critical of “consumer welfare standard” for its narrow focus on price effects (historically, the Univ. of Chicago School doctrine favored by courts has been used for decades by Democratic and Republican administrations). Instead, they believe antitrust has a broader role to play in society and should address range of social ills, including labor market impacts, income inequality, privacy and innovation. New Merger Guidelines issued in Dec. 2023 rely heavily on 1960s precedent ·       Not law – reflect current FTC and DOJ enforcement priorities and new theories of harm ·       Lower existing market concentration thresholds at which agencies presume a transaction is unlawful (e.g., 30% market share presumptively anticompetitive) ·       Demonstrate agencies’ increased focus on vertical and conglomerate mergers, potential competition, labor market concerns, private equity firms, and technology company acquisitions Preference for litigation over divestiture settlements to resolve merger investigations: ·       Litigating consummated deals (Meta/Within, Welsh Carson & USAP, American Airlines/JetBlue JV) ·       Challenging PE roll-up transactions (Welsh Carson & USAP, JAeterinary clinics) ·       Particular focus on health care (Novant, John Muir, HCA Utah) Be well. Winston & Strawn LLP Richie Falek, Conor Reidy #MandA

The FTC is suing to block the merger of Tapestry the parent company of Coach from purchasing Capri Holdings Limited the parent company of Michael Kors claiming it would impede competition for consumers in the mid price handbags category. The FTC claims they would raise prices which would negatively impact consumers. I don’t see the FTC or any European Union challenging the endless price increases by luxury houses. In the end if Coach wanted to raise prices they could independently of Michael Kors Not buying the argument as the strength of the brand perception and desirability of the bag dictate pricing more than the merger. I don’t buy the argument that pricing alone will dictate whether consumers are purchasing a Coach and Michael Kors bag. They have different brand heritages and perceptions. It will be interesting to see where it plays out. I would be more concerned with the consolidation and power of Amazon than two mid priced handbag fashion players What do you guys think? #mergersandaquisitions #retail #legalnews #retailing #fashionretail https://lnkd.in/eMMPyDtn

Future of retail: fashion law and antitrust challenges ahead; views from Luxury, Fashion, and Beauty practice #Curtislawfirm #fashion #luxury #beauty #fashionlaw #futureofretail Great article Sasha Rogelberg Fortune

The FTC has been fairly active on the anti-trust front. Here's another deal under scrutiny: Tapestry (owner of Coach, Kate Spade, and Stuart Weitzman) acquiring the assets of Capri Holding (owner of Michael Kors, Versace, and Jimmy Choo). I question the validity of holding up this transaction when you consider the scope and depth of companies like Authentic Brands (Brooks Brothers, Barneys, Judith Leiber, Neil Lane, Vince, Ted Baker, Vince Camuto and many more) and Kering (although technically a French company, they own Gucci, Saint Laurent, McQueen, Balenciaga, Bottega Veneta and many more). #TheRetailLawyer #licensing #retail #retailevolution #attorneyadvertisement https://lnkd.in/eyb2jXga

The FTC is trying to block the merger of Coach and Michael Kors, arguing it would reduce competition in the "accessible luxury" handbag market. Coach, Kate Spade, and Michael Kors hit that mark perfectly. But would the merged company still deliver the same value? The FTC thinks choice and innovation could suffer if these rivals join forces. But the brands argue there's plenty of competition from other "accessible luxury" options. #SchroderDavisLaw #FashionLaw #EntertainmentLaw #IPLaw https://lnkd.in/eTM4Avt3

I came across an article recently about the FTC blocking a acquisition deal! Tapestry, the company that owns Coach handbags, wanted to buy Capri Holdings (which owns Michael Kors) for $8.5 billion. But the FTC had objections! They're worried that if the companies join forces, it could hurt employees and give the new giant too much control over luxury handbag prices. The employee thing is debatable, but the price control got me thinking. Do people who buy these fancy bags really care if they cost a little more? After all, these brands are super popular, no matter the price (price inelastic) as the target consumers belong in top income bracket. Look at LVMH( Moet Hennessy Louis Vuitton) , the biggest name in luxury. They've been buying up brands like crazy in last few decades (Tiffany, Dior, Sephora, Givenchy, Bulgari etc) and their revenue has skyrocketed. There overall revenue in 2023 was ~$85B up from ~$22B in 2010. LVMH acquisition spree was with no major roadblocks. It's pretty rare for the FTC to get involved in luxury goods mergers since they affect a smaller, wealthier group. I wonder how Tapestry will try to convince them otherwise! Feel free to comment if you have different opinion.  #MergerandAcquisition #luxurybrands

🔔 𝐌𝐚𝐣𝐨𝐫 𝐅𝐚𝐬𝐡𝐢𝐨𝐧 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐀𝐥𝐞𝐫𝐭! Versace, Michael Kors, and Jimmy Choo has a new owner 🤓 💡 Tapestry Acquires Capri Holdings: For a whopping $8.5 billion, Tapestry – the powerhouse behind Coach, Kate Spade, and Stuart Weitzman – is set to take control of Versace, Michael Kors, and Jimmy Choo. 💡 Strategic Play: While the deal took many by surprise, Tapestry's CEO Joanne Crevoiserat emphasized the acquisition's aim to expand the company's global reach. 💡 Deal Highlights:The purchase price represents a 39% premium on Capri's last closing price. 💡 They're anticipating $200 million in cost synergies within three years post-acquisition. The transaction, funded by new debt and existing cash reserves, is slated for completion in 2024. Given Tapestry's impressive revitalization under CEO Joanne Crevoiserat since 2019, this move marks a significant milestone in her tenure. What are your thoughts on this merger? How do you see this influencing the fashion retail landscape? 𝐖𝐢𝐥𝐥 𝐰𝐞 𝐬𝐞𝐞 𝐚 𝐧𝐞𝐰 𝐞𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐞 𝐦𝐚𝐫𝐤𝐞𝐭𝐩𝐥𝐚𝐜𝐞 𝐜𝐨𝐦𝐢𝐧𝐠 𝐨𝐮𝐭 𝐟𝐫𝐨𝐦 𝐚𝐥𝐥 𝐭𝐡𝐞𝐬𝐞 𝐛𝐫𝐚𝐧𝐝𝐬 🤔 #EmerceConsulting #fashion #mergersandacquisitions #retailnews #tapestry #capriholdings