Tapestry Inc. and Capri Holdings Ltd. have initiated the process to appeal a recent decision made by a U.S. District judge to pause their proposed merger, which involves the parent companies of Coach and Michael Kors handbags. This information was disclosed in a court filing made on Monday.

In her ruling issued on Thursday, U.S. District Judge Jennifer Rochon highlighted that Tapestry and Capri are considered “close competitors.” She expressed concerns that the merger would diminish direct competition between the two brands and could potentially lead to increased prices for consumers.

This decision follows the Federal Trade Commission’s (FTC) lawsuit filed six months prior, aimed at blocking Tapestry’s planned $8.5 billion acquisition of Capri. The FTC argued that this union would effectively erase the competition between the brands that both companies offer within the affordable luxury handbag market.

Tapestry has been actively pursuing acquisitions in recent years, already owning brands such as Kate Spade New York, Stuart Weitzman, and Coach. Meanwhile, Capri holds popular labels including Versace, Michael Kors, and Jimmy Choo.

Moreover, the FTC has voiced concerns that the merger could reduce the motivation for the two companies to compete for talent, which could lead to a decline in wages and benefits for employees. The combined workforce of Tapestry and Capri is estimated to consist of around 33,000 employees globally.

In response to the judge’s ruling on Thursday, Tapestry expressed disappointment, describing it in a statement as both “disappointing” and “incorrect on the law and the facts.”