Judge blocks proposed acquisition of Coach owner Malik Tapestry's Michael Kors parent Capri

A federal judge is blocked of the tapestry acquisition Capri Thursday after a brief trial last month in New York.

In her order, Judge Jennifer Rochon granted the Federal Trade Commission's motion for a preliminary injunction to block the proposed merger, which would have married two of America's largest luxury houses and put six fashion brands under one company: Tapestry, Coach, Kate Spade and Versace with Stuart Weitzman Caprice. , Jimmy Choo and Michael Kors.

Tapestry's stock rose 14% after the order was filed while Capri's plunged more than 52%.

Representatives for Tapestry did not immediately return a request for comment.

Rochon's reasoning behind the order was not immediately clear. A detailed opinion was filed under seal and is not currently accessible to the public.

The former rival and longtime competitor announced the $8.5 billion deal more than a year ago, but the FTC sued to block it in April and sought a preliminary injunction to stop the deal.

The FTC argued that if the companies merged, it would harm consumers by making the market for affordable handbags less accessible and leaving employees with worse pay and benefits. Tapestry argued that consumers would be better off if it merged with Capri because it would allow them to keep up with trends faster, offer better products and reach more customers.

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