Tapestry Terminates Deal for Capri

(Reuters) – Tapestry announced on Thursday the termination of its $8.5 billion deal for Capri, the owner of Michael Kors, after a U.S. judge blocked the agreement.

Shares of Tapestry (NYSE: TPR) increased by 5% in premarket trading, whereas Capri's shares fell by 3%.

Both companies have mutually agreed that ending the merger agreement is in their best interest, given the uncertainty of the legal process and its unlikely resolution by the February 10, 2025 deadline.

Tapestry will reimburse Capri approximately $45 million for expenses related to the transaction.