| As FTC Move to Stop Handbag
Merger of Tapestry & Capri It
Cites Middle Class Workers
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
Sept 9 – At the hearing on the
US Federal Trade Commission's
bid to enjoin the merger of
Tapestry and Capri started up
before U.S. District Court for
the Southern District of New
York Judge Jennifer L. Rochon,
Inner City Press was there,
thread here, more on X for
Subscribers here
and Substack here
FTC lawyer: There
is an accessible luxurt
market, according to Tapestry
own internal documents. The
2023 DOJ Merger Guidelines
uses HHI or the Philadelphia
National Bank. This proposal
violates both, and would have
violated the 2010 Merger
Guidelines.
FTC lawyer: The
court will hear from Mr Kors
himself. Michael Kors is not a
failing brand. Tapestry wants
its data - it would scramble
the eggs. This merger would
harm working class and middle
class women
Tapestry's
lawyer: Anyone with a smart
phone knows the FTC theory is
wrong. There are hundreds of
brands of handbags, from NYC
to Des Moines. Antitrust is
not about the FTC's theories,
but consumers
Tapestry's
lawyer: Women have in their
ckosets Gucci, Coach and
Calvin Klein bags... We had to
fend off a Trader Joe's tote
bag. Then there are the
pre-owned bags. Here's a bag
that looks like Croks, they
sell it in Dick's Sporting
Goods
Tapestry's
lawyer: Lululemon is slated to
surpass Kate Spade in
handbag... Our witness will
testify that handbags are a
Want, not a Need. Judge:
You have a slide you call
confidential on the screen.
Tapestry's lawyer: It's not on
the public screen. [Oh.]
Tapestry's
lawyer: What does the FTC
have? Three 2021 emails from a
Tapestry executives with
parentheticals about
"accessible luxury." That is
not enough
Lawyer for Capri
/ Michael Kors: His handbags
peaked in 2015-16. The
company's signature jet-set
look was very hot. But
recently they have lost their
mojo
Lawyer for
Michael Kors / Capri: Michael
Kors' bags are down below
$100, now out of the luxury
market. So it does not comport
with the FTC's theory. It's
the consumer who sets the
price. There's no real
demarcation line at $100, to
distinguish from Calvin Klein
Lawyer for
Michael Kors / Capri: Brand
heat happens when consumers
are proud to carry a handbag.
Consumers are just not getting
that from Michael Kors. We
can't invest in innovation or
craftsmanship. Capri has been
trying but the numbers tell
the story.
Lawyer for
Michael Kors / Capri: We
cannot wait deep into 2025.
What Your Honor decides here
is determinative. We submit
you will agree this
transaction is not
anticompetitive. Thank you.
Judge:
Let's break. more on X
for Subscribers here
and Substack here
***
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