Capri Holdings (CPRI), the parent company of Michael Kors and Jimmy Choo, saw its shares tumble about 45% in premarket trading on Friday after a US judge struck down the pending $8.5 billion merger with Coach owner Tapestry (TPR). blocked.

In a court filing obtained by Yahoo Finance, U.S. District Judge Jennifer Rochon ruled that “antitrust has come into fashion,” arguing that a merger between the two fashion powerhouses “will significantly reduce competition in the market for accessible luxury handbags.”

Tapestry and Capri announced their intended merger last year. The combination would have brought together six high-profile fashion brands under one roof: Tapestry’s Coach, Stuart Weitzman and Kate Spade with Capri’s Versace, Jimmy Choo and Michael Kors.

Shares of Tapestry moved in the opposite direction of Capri in the wake of the news late Thursday, rising about 15% in premarket trading.

In a statement released on Thursday evening, Tapestry said it plans to appeal the decision, adding: “Tapestry and Capri operate in an industry that is intensely competitive, dynamic, constantly expanding and highly fragmented among both established players and newcomers.

“We face competitive pressure from both cheaper and more expensive products and continue to believe this transaction is pro-competitive and pro-consumer.”

The Federal Trade Commission had moved to block the acquisition in April, seeking a preliminary injunction to halt the deal. That order was granted by Rochon on Thursday.

At the time, the agency had argued that a merger would “(threaten to) deprive consumers of competition for affordable handbags, while hourly workers would lose the benefits of higher wages and more favorable working conditions.”

Tapestry fought back against these claims, arguing that a merger was necessary to compete with dominant European players like Gucci.

The ruling blocks the merger while the FTC continues its proceedings, but all parties will still have the opportunity to argue their case before the FTC.

“Today’s decision is a victory not only for the FTC, but also for consumers across the country who seek access to quality handbags at affordable prices,” Henry Liu, director of the FTC’s Bureau of Competition, said in a statement. “These bags are a product that millions of people rely on throughout their daily lives. The decision will ensure that Tapestry and Capri continue to compete head-to-head for the benefit of the American public.”

Ahead of Thursday’s ruling, Pauline Brown, former North American chairman at LVMH, owner of fashion brands such as Louis Vuitton and Dior, told Yahoo Finance that the FTC would face a “high hurdle” in making its case.

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