NEW YORK (AP) — The Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd., saying that the deal would eliminate direct head-to-head competition between the fashion companies' brands like Coach and Michael Kors in the so-called affordable luxury handbag arena.
The agency also said Monday that the deal, a nnounced in August 2023, threatens to eliminate the incentive for the two companies to vie for employees and could depress employees’ wages and workplace benefits. The combined Tapestry and Capri would employ roughly 33,000 people worldwide, the agency said.
“With the goal to become a serial acquirer, Tapestry seeks to acquire Capri to further entrench its stronghold in the fashion industry,” said Henry Liu, director of the FTC’s bureau of competition in a statement.
The move is the latest by the FTC to take a more aggressive position on antitrust issues.
In February, the FTC sued to block the $24.6 billion merger between grocery giants Kroger and Albertson's, saying the lack of competition would lead to higher grocery prices and lower wages for workers. The supermarket chains said Monday they will sell more of their stores in an effort to quell the federal government’s concerns.
Kroger and Albertsons announced their planned merger in October 2022. The companies said it’s necessary so they can better compete with Walmart, Amazon and other big rivals.
Tapestry's and Capri's portfolio of brands cover a wide array of items from clothing to eyewear to shoes. Tapestry has been on an acquisition binge for the past several years, and already owns Kate Spade New York, Stuart Weitzman and Coach. Capri owns the Versace, Michael Kors and Jimmy Choo brands.
Specifically, Tapestry’s Coach and Kate Spade brands and Capri’s Michael Kors brand are close rivals in the handbag market. The FTC said that they continuously monitor each other’s handbag brands to determine pricing and performance, and they each use that information to make strategic decisions, including whether to raise or reduce handbag prices.
Once completed, the new entity would be the fourth largest luxury company in the world, with a combined market share of around 5.1% of the luxury goods market, according to research firm GlobalData PLC. In the Americas, the company will become the second largest luxury player behind LVMH, with a combined share of 6% of the luxury goods market, GlobalData said.
Both Capri and Tapestry said they strongly disagreed with the FTC’s decision.
“The market realities, which the government’s challenge ignores, overwhelmingly demonstrate that this transaction will not limit, reduce, or constrain competition, ” Capri said in a statement on its website. “Tapestry and Capri operate in the fiercely competitive and highly fragmented global luxury industry. Consumers have hundreds of handbag choices at every price point across all channels, and barriers to entry are low. ”
Capri said it intends to “vigorously defend this case in court alongside Tapestry and complete the pending acquisition.” It said the U.S. FTC is the only regulator that hasn't approved the transaction.
Tapestry said that “there is no question that this is a pro-competitive, pro-consumer deal and that the FTC fundamentally misunderstands both the marketplace and the way in which consumers shop. ”
“Tapestry and Capri operate in an intensely competitive and highly fragmented industry alongside hundreds of rival brands, including both established players and new entrants.” Tapestry said in a statement.
FILE - A Coach store is seen, May 3, 2019, at the Citadel Outlets in Commerce, Calif. The Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd., saying that the deal would eliminate direct head-to-head competition between the fashion companies' brands like Coach and Michael Kors in the so-called affordable luxury handbag arena. (AP Photo/Richard Vogel, File)
FILE - The Federal Trade Commission building is seen, Jan. 28, 2015, in Washington. The Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd., saying that the deal would eliminate direct head-to-head competition between the fashion companies' brands like Coach and Michael Kors in the so-called affordable luxury handbag arena. (AP Photo/Alex Brandon, File)
BELGRADE, Serbia (AP) — Hundreds of people laid flowers and lit candles on Friday to commemorate the victims of Serbia's first-ever school shooting a year ago that left nine children and a school guard dead and six people wounded.
A somber, silent queue formed on a rainy day outside the Vladislav Ribnikar Elementary School in central Belgrade where a 13-year-old boy is accused of opening fire at his schoolmates with his father's guns last year.
The shooting stunned Serbia. The Balkan nation was no stranger to violent crime, but mass shootings are rare, and none had taken place at a school before.
Just a day later, a shooting rampage outside the capital further shocked the country. A 20-year-old man was accused of killing nine and wounding 12 others, mostly young people.
Friday's vigil formally started at 8:41 a.m., the time of the school shooting last year. Serbian television stations interrupted their broadcasts, showing the text “We remember” on a black screen.
The all-day event near the school also included art installations, a panel discussion and short films about the victims. The street where the school is located is closed to traffic.
The event was titled “Awakening,” a call for introspection in a nation that is yet to come to terms with its role in multiple wars in the 1990s and the culture of violence that has prevailed ever since.
Ninela Radicevic, a mother of a victim, told The Associated Press ahead of the anniversary that society and the government had “rushed to forget” the tragedy. Radicevic, who lost her 11-year-old daughter Ana Bozovic in the shooting, said she hoped Serbia can prevent such a horrific crime from happening again.
"We have missed many chances to react better... (but) I think it is never too late to pause ... and to try not to make the same mistakes in the future," said psychology professor Aleksandar Baucal, who is part of a team behind the commemoration.
The slain children’s parents have fought to have the school closed and turned into a memorial center. They've organized protests, remembrance events and testified about their ordeal to promote awareness among the public.
Serbia’s populist government launched a gun crackdown after the shooting, collecting about 80,000 weapons and rounds of ammunition. State-backed support teams offered counseling and police officers were deployed outside schools for security.
Serbian President Aleksandar Vucic said on Instagram after paying respects Friday that the “unthinkable tragedy has left a permanent scar on the soul of our entire nation.”
Suspects in both of the shootings were apprehended. The alleged school shooter's parents went on trial in January, charged with teaching their underage son to shoot and with not securing the weapons at the family home. The trial is continuing. The boy has been held in an institution since the attack.
The trial of the other suspect and his father is to start later this month in the central town of Smederevo.
Shock and anger because of the shootings triggered months of street protests demanding the resignations of top officials and a ban on media that spew hate speech and intolerance.
People cry in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
A man stands in front of the Vladislav Ribnikar school prior to a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People gather in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People cry in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People gather in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People gather in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People stand in front of the Vladislav Ribnikar school prior to a ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People gather in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
A woman stands in front of the Vladislav Ribnikar school prior to a ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People gather in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
A man stands in front of the Vladislav Ribnikar school prior to a ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People gather in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
People cry in front of the Vladislav Ribnikar school during a memorial ceremony to mark the first anniversary of a shooting that killed 10 people in Belgrade, Serbia, Friday, May 3, 2024. (AP Photo/Darko Vojinovic)
