New York Civic Group Defends Fashion Merger Against FTC’s Antitrust Action

According to the Financial Times, the Partnership for New York City (PFNYC), a prominent civic group advocating for Manhattan’s business interests, has recently turned its attention to a high-profile legal battle involving two major “accessible luxury” brands: Coach and Michael Kors.

Last week, PFNYC publicly urged New York’s senators and senior House Representatives to oppose a lawsuit filed by the Federal Trade Commission (FTC). The FTC is challenging the proposed merger of Tapestry, which owns Coach, and Capri Holdings, the parent company of Michael Kors. The merger, valued at over $20 billion, would also bring together the Kate Spade brand under a single corporate umbrella.

The FTC argues that the merger could harm consumers by eliminating competition in the upper middle-class, “accessible luxury” handbag market. However, PFNYC’s letter dismisses the FTC’s action as “ideologically motivated” and a “clear case of regulatory over-reach,” reflecting the group’s broader concerns about the impact on New York’s business community.

The New York connection to the case is significant: both Coach and Michael Kors are headquartered in the city, and Joanne Crevoiserat, CEO of Tapestry, serves on PFNYC’s executive committee. The letter’s appeal highlights the group’s vested interest in protecting local business interests, particularly given the influential members of PFNYC, including top mergers and acquisitions bankers and lawyers, whose fortunes are closely tied to a thriving deals marketplace. Notable supporters include Blair Effron, Brad Karp, and Rodgin Cohen, who are also known for their support of Vice President Kamala Harris.

As the FTC continues its review, the debate over the merger underscores the tension between regulatory oversight and local economic interests, with PFNYC advocating vigorously on behalf of New York’s business community.

Source: The Financial Times