Charles Corpening Quoted in Retail Brew on Prada’s $1.4 Billion Acquisition of Versace

 

Montclair, NJ – April 22, 2025 – Charles Corpening, Chief Investment Officer and Managing Partner at West Lane Partners, was featured in Retail Brew’s recent article, “Tariffs played a bigger role in the Prada-Versace deal than you might think.”

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The article explores the dynamics behind Prada’s $1.4 billion acquisition of Versace from Capri Holdings. Capri had acquired Versace in 2019 with ambitions of building a U.S.-based luxury powerhouse to rival European giants like LVMH. However, mounting operational costs and challenges scaling the brand ultimately turned Versace into a liability. Prada, recognizing a strategic opportunity, stepped in.

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Tariffs may have played a quiet but critical role in the transaction. As Retail Brew notes, Versace likely sold for less than Capri originally hoped, due in part to broader market volatility. Charles Corpening commented on this shift in deal dynamics:

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“Given current market turbulence, whether from tariffs or geopolitical uncertainty, we’ve seen a marked slowdown in M&A activity,” said Corpening. “More often than not, deals are being postponed or canceled. However, this announcement shows that transactions can indeed go forward. But they’re being done at reduced valuations to compensate buyers for their willingness to move forward despite market uncertainty.”

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He added:

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“The combined forces of economic uncertainty and geopolitical turbulence have eroded consumer confidence. This, along with the threat of a recession, has chilled confidence both at the boardroom level and on Main Street.”

 

To read the full article, visit Retail Brew.