Fashion companies Capri Holdings Limited and Tapestry -- parent companies behind the Coach and Michael Kors brands -- ended their $8.5 billion merger deal Thursday. The deal was blocked by the Federal Trade Commission.

Now Capri is pressing forward with a revamp that will include store closures and a marketing push for its Michael Kors brand.

Capri Holdings (CPRI) and Tapestry, Inc. (TPR) have terminated their $8.5B merger deal due to regulatory challenges.

Fashion giants Tapestry and Capri have scrapped their planned $8.5bn merger on the back of legal uncertainty after US regulators argued that the tie-up would eliminate head-to-head competition in the luxury accessories market.

Capri Holdings Ltd and Tapestry Inc. have ended an $8.5 billion plan to merge after a US court order freezing the deal due to US antitrust regulators’ objections.