Capri Holdings (CPRI) shares have dropped 5.6% to $18.55 as of 7:46 am on November 14th, following the announcement that Capri and Tapestry have terminated their $8.5 billion merger plan. The decision comes after a US court order froze the deal due to objections from antitrust regulators. The Federal Trade Commission (FTC) opposed the merger, arguing it would reduce competition in the "accessible luxury" handbag market. The collapse of the merger adds to Capri's challenges, as the company recently reported weak financial results, with declining revenue at its flagship brand, Michael Kors, and a drop in sales at Versace. Capri's CEO, John Idol, expressed confidence in the company's future, emphasizing its focus on its three key luxury brands, including Jimmy Choo, and its strong global retail and digital presence. Analysts suggest that Capri might need to consider selling some of its brands following the failed merger.