Many luxury brands will remain separate entities for now.

A judge on Thursday blocked the merger of Tapestry and Capri Holdings, two companies that oversee a number of accessories brands, The Washington Post reported. The $8.5 billion merger was announced last year, but Judge Jennifer Rochon of the Southern District of New York ruled it would result in higher prices for consumers.

The merger “will likely significantly reduce competition in the accessible luxury handbag market, in violation of Section 7 of the Clayton Act,” Rochon wrote.

Tapestry owns labels including CoachStuart Weitzman and Kate Spade, the Job note. Capri, on the other hand, is home to brands such as Versace, Michael Korsand Jimmy Choo. By combining the two companies, the merger would make them more competitive against large luxury conglomerates like LVMH and Kering. Plus, it would put them at the high end of the luxury industry.

The Federal Trade Commission sued to block the merger in April, The Washington Post » wrote, and the trial began in September. Although Rochon has effectively blocked the merger for now, the case will continue in the FTC’s internal administrative court, and a Tapestry spokesperson told the newspaper that the company plans to appeal the decision.

“Tapestry and Capri operate in an extremely competitive and dynamic industry, constantly expanding and highly fragmented between established players and new entrants,” the spokesperson said. “We face competitive pressures from both lower and higher priced products and continue to believe this transaction is pro-competitive and pro-consumer.” »

If the merger were to ultimately go through, the combined Tapestry and Capri companies would control 59 percent of the “accessible luxury” handbag market, Rochon wrote in his ruling. Following the decision, Capri shares fell 51 percent, while Tapestry shares rose more than 12 percent.

Both brands exist within a largely luxury market. slow motion In recent months, many companies have reported poor sales and profit results. They are not immune to this trend either: Capri’s turnover fell 13.2% year-on-year in August, Job note. Tapestry’s revenue rose 1 percent year-over-year thanks to Coach’s strong performance, but Stuart Weitzman’s sales fell 19.2 percent during the same period.