Capri Holdings (CPRI, Financial), a leading American luxury fashion group, saw its stock prices drop dramatically by over 46%, settling at $22.13 in pre-market trading. This substantial decline followed a decision by U.S. federal judge Jennifer Rochon, who approved a preliminary injunction motion from the Federal Trade Commission (FTC).
The injunction effectively halts the proposed acquisition of Capri Holdings by Tapestry Group, the parent company of Coach. The merger would have united two of the largest luxury goods companies in the United States, but the FTC intervention has caused this high-profile deal to collapse.
