Deal blocked between Coach, Michael Kors owners [Video]

A federal judge blocked Tapestry’s acquisition of Capri on Thursday following 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 marry America’s two largest luxury houses and put six fashion brands under one company: Tapestry’s Coach, Kate Spade and Stuart Weitzman with Capri’s Versace, Jimmy Choo and Michael Kors. 

Tapestry’s stock surged 10% after the order was filed while Capri’s plunged about 50%.

In a statement, Tapestry said it plans to appeal the order, “consistent with our obligations under the merger agreement.”

“Today’s decision granting the FTC’s request for a preliminary injunction is disappointing and, we believe, incorrect on the law and the facts. Tapestry and Capri operate in an industry that is intensely competitive and dynamic, constantly expanding, and highly fragmented among both established players and new entrants,” the company said. “We face competitive …