Fashion company Tapestry says it’s terminating its proposed merger with Capri because the two luxury groups don’t expect to overcome an antitrust challenge within an acceptable time frame.

Tapestry and Capri Holdings have filed their notice to jointly appeal the decision by a U.S. District judge to temporarily halt the merger between the makers of Coach and Michael Kors handbags, according to a court filing Monday.

The Federal Trade Commission sued to block Tapestry, Inc.’s $8.5 billion acquisition of Capri Holdings Ltd.

Tapestry, parent company of luxury handbag and accessories retailer Coach, is buying the owner of fashion brands including Michael Kors, Versace and Jimmy Choo, Capri Holdings.

Coach turned back the clock with a collection of looks reminiscent of past eras, including 1970s romance and 1990s grunge, with a theatrical presentation at New York Fashion Week.