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UPS put profits over safety before plane crash that killed 14, lawyer alleges

Summary

  • Families file wrongful death suits alleging prioritized profits over safety.
  • NTSB found cracks where the MD-11’s engine attached before detaching on takeoff.
  • grounded all MD-11 cargo jets used by UPS, FedEx and Western Global.
  • Lawsuits also name GE, Boeing and VT San Antonio Aerospace over inspections and maintenance.

A deadly UPS  in Kentucky stemmed from from corporate choices that favored profits over safety, according to a lawyer who filed two Wednesday, which allege the company kept flying older aircraft without increasing maintenance beyond what’s regularly scheduled.

Last month’s fiery crash happened during takeoff after the plane’s left engine detached, and cracks were later found where the engine connected to the wing, the National Transportation Safety Board said. The lawsuit also names General Electric, which made the plane’s engine. Both UPS and GE said they don’t comment on pending lawsuits and that safety is a top priority as they assist the federal investigation.

Robert Clifford, a lawyer representing two of the victims killed on the ground, said those cracks show the MD-11 jets, which average more than 30 years old, are too dangerous for package delivery companies to keep in the air. The Federal Aviation Administration has grounded all MD-11s, which have been exclusively hauling cargo for more than a decade.

Three pilots and 11 on the ground were killed on Nov. 4 when the plane, fully loaded with fuel for a flight to Hawaii, plowed into businesses just outside the airport in Louisville, where UPS has its largest package delivery hub.

Clifford said UPS was saving money and aircraft downtime by keeping “old, tired” planes in the air while not increasing the number of inspections. Fellow attorney Bradley Cosgrove said at a news conference that they believe inspections should have found the cracks cited by federal investigators, adding, “This plane should have never been in the air.”

The lawsuits filed in state court are on behalf of the families of Angela Anderson, 45, who was shopping at a business by the airport, and Trinadette “Trina” Chavez, 37, who was working at Grade A Auto Parts.

“We intend to stand up for ‘Nena’ and fight for her, no matter how long it takes, just like Nena always did for us,” said Chavez’s sister, Gabriela Hermosillo-Nunez, calling her by another nickname that her eight younger brothers and sisters used.

The suit also names Boeing, which acquired the original manufacturer of the plane McDonell Douglas, and VT San Antonio Aerospace, Inc., which inspected and maintained the plane. The two companies did not immediately respond to email and phone messages seeking comment.

The jet that crashed had just finished more than six weeks of extensive maintenance, completed Oct. 18, in which VT San Antonio Aerospace crews repaired significant structural issues, according to the lawsuits. Those included repairing a crack in the center wing fuel tank, addressing corrosion on structural components, and lubricating parts involved in attaching the engine to the wing.

The engine mount hadn’t undergone a detailed inspection since 2021, and the plane wasn’t due for another detailed inspection of that part for another 7,000 takeoffs and landings.

After the crash, federal investigators grounded all 109 of the remaining MD-11s used by UPS, FedEx and Western Global for inspections and repairs, but the FAA hasn’t said what will be required.

The aircraft make up about 9% of the UPS airline fleet and 4% of FedEx’s fleet. If massive repairs or overhauls are ordered, experts said package delivery companies may find replacing them the better option. UPS announced last week it didn’t expect the MD-11s to be back in the sky until at least after the holiday season.

The legal battles stemming from the crash are likely just beginning. UPS was named as a defendant in a federal lawsuit filed last month accusing it of negligence and wanton conduct. The crash “acted like a bomb” and the plaintiffs had their lives and businesses “turned upside down” as a result, the suit said.

Trump plan would roll back US vehicle mileage rules

Summary

  • Trump to propose weakening through 2031.
  • Plan rolls back Biden-era rules encouraging EVs and lower emissions.
  • Auto executives support the move; environmental groups oppose it.
  • Proposal follows broader efforts to loosen pollution and mileage regulations.

 

WASHINGTON (AP) — President Donald Trump is expected to announce a proposal Wednesday to weaken  for the , loosening regulatory pressure on automakers to control pollution from gasoline-powered cars and trucks, according to several familiar with the plans.

The proposal would significantly reduce fuel economy requirements, which set rules on how far new vehicles need to travel on a gallon of gasoline, through the 2031 model year, according to a White House official and several people familiar with the plan. They were not authorized to discuss the matter publicly because the proposal has not been announced and spoke on condition of anonymity. Further details were not immediately available.

The move would be the latest action by the to reverse Biden-era policies that encouraged cleaner-running cars and trucks, including electric vehicles. Burning gasoline for vehicles is a major contributor to planet-warming greenhouse gas emissions. The Republican administration says the new rules would increase Americans’ access to the full range of gasoline vehicles they need and can afford.

Trump is set to announce the plan at a White House event that is expected to include top executives from the three largest U.S. automakers, who have praised the planned changes. Since taking office in January, Trump has relaxed auto tailpipe emissions rules, repealed fines for automakers that do not meet federal mileage standards and terminated consumer credits of up to $7,500 for EV purchases.

Ford CEO Jim Farley said in a statement Wednesday that the planned rollback was “a win for customers and common sense.”

“As America’s largest auto producer, we appreciate President Trump’s leadership in aligning fuel economy standards with market realities. We can make real progress on carbon emissions and energy efficiency while still giving customers choice and affordability,” Farley said.

Stellantis CEO Antonio Filosa said the automaker appreciates the administration’s actions to “realign” the standards.

Environmentalists decried the decision.

“In one stroke Trump is worsening three of our nation’s most vexing problems: the thirst for oil, high gas pump costs and global warming,” said Dan Becker, director of the Safe Climate Transport Campaign for the Center for Biological Diversity.

“Trump’s action will feed America’s destructive use of oil, while hamstringing us in the green tech race against Chinese and other foreign carmakers,” Becker said.

Trump has repeatedly pledged to end what he falsely calls an EV “mandate,” referring incorrectly to Democratic President Joe Biden’s target that half of all new vehicle sales be electric by 2030. EVs accounted for about 8% of new vehicle sales in the United States in 2024, according to Cox Automotive.

No federal policy has required auto companies to sell EVs, although California and other states have imposed rules requiring that all new passenger vehicles sold in the state be zero-emission by 2035. Trump and congressional  blocked the California law earlier this year.

Transportation Secretary Sean Duffy urged his agency to reverse existing fuel economy requirements, known as Corporate Average Fuel Economy, soon after taking office. In June, he said that standards set under Biden were illegal because they included use of electric vehicles in their calculation. EVs do not run on gasoline. After the June rule revision, the traffic safety agency was empowered to update the requirements.

Under Biden, automakers were required to average about 50 miles (81 kilometers) per gallon of gas for passenger cars by 2031, compared with about 39 miles (63 kilometers) per gallon today.

The Biden administration also increased fuel-economy requirements by 2% each year for light-duty vehicles in every model year from 2027 to 2031, and 2% per year for SUVs and other light trucks from 2029 to 2031. At the same time, it called for stringent tailpipe rules meant to encourage EV adoption.

The auto industry has complained that both Biden-era rules were difficult to meet.

Mileage rules have been implemented since the 1970s energy crisis, and over time, automakers have gradually increased their vehicles’ average efficiency.

CBRE taps new leader for Richmond, Norfolk

Global services and announced Tuesday that it is promoting its mid-Atlantic region senior sales director, Sarah Cooley, to and market leader for the firm’s southern Virginia region, which includes CBRE’s and offices.

In this role, Cooley will lead daily operations for the Fortune 500 firm’s advisory services business across the Richmond and Hampton Roads regions. She will also continue to serve on CBRE’s mid-Atlantic leadership team, helping develop and execute strategy for a region that includes six offices in Virginia, Maryland and Washington, D.C.

According to a spokesperson, Cooley had already been leading CBRE’s southern Virginia market in an interim capacity after Brad Flickinger retired last year.

“Sarah has consistently demonstrated the ability to translate strategy into measurable results,” said Kyle Schoppmann, president of CBRE’s mid-Atlantic markets, in a statement. “Her leadership has strengthened our presence in key markets, and with this promotion, she is well-positioned to continue accelerating growth in southern Virginia.”

She joined the leadership team in 2019 as senior sales director. The company credits her for playing an “instrumental” role in advancing the firm’s growth strategy across the mid-Atlantic region.

Cooley joined CBRE in 2011, serving in various roles in the Chicago market — including sales director — before relocating to Richmond in 2019.

Before CBRE, she worked at Courtesy Associates, where she managed government event planning and organized conferences for the President’s Emergency Plan for AIDS Relief.

She earned her bachelor’s degree in English from the University of Virginia.

“I’m honored to be stepping into the role of market leader and to have the opportunity to lead our talented teams in southern Virginia,” said Cooley in a statement. “I look forward to building on our strong foundation, continuing to grow and evolve our markets and ensuring we deliver exceptional results for our clients.”

Headquartered in Dallas, CBRE has more than 140,000 employees and serves clients in more than 100 countries.

Virginia lawmakers outline new retail marijuana plans

SUMMARY: 

  • Joint committee members propose possible amendments for establishing market in state
  • Retail sales could begin by November 2026
  • Committee members do not plan to allow localities to opt out of sales

Lawmakers who in coming months will contribute to shaping the bills that launch Virginia’s long-awaited retail marijuana market unveiled some plans Tuesday.

Members of the Joint Commission to Oversee the Transition of the Commonwealth into a Retail Market discussed at a meeting in proposed legislative amendments they will suggest making to the 2025 bills that would have created that retail marijuana market if the 420-unfriendly had signed them.

“We’ve designed a licensing framework that prioritizes small businesses and prevents market dominance by a few large companies,” Commission Chair and Del. Paul Krizek, D-Fairfax, said early in the meeting.

As of now, the joint commission seems in favor of opening the legalized, adult-use market quickly. Retail sales could begin by Nov. 1, 2026, according to the committee’s proposed amendments.

Another big takeaway from Tuesday’s meeting: The joint commission does not seem inclined to recommend that localities could opt out of retail .

“By allowing opting out, what we’re really doing is allowing opting in to the illicit market, so there will not be any dry counties like in the days of alcohol,” Krizek said.

The committee did not reveal language for a proposed bill Tuesday, however Krizek stressed that the commission members are all on the same page about what they want to include. But more needs to be worked out, he said, before it’s made public.

“This bill hopefully has a little for everybody, and it builds a new market that supports hundreds of small businesses and strengthens Virginia agriculture, reduces the racial disparities created by the prohibition on marijuana, and protects, most importantly, public safety and health,” Krizek said.

Virginia’s first dispensary opened in 2020. The next year, under the then-Democratic-majority state , the commonwealth became the first state in the South to legalize marijuana. However, Youngkin, a Republican, has vetoed bills that would have enabled retail sales of marijuana for recreational use.

But Gov.-elect Abigail Spanberger, a Democrat, has pledged to sign legislation creating a retail marijuana market. Earlier this year, the established the joint commission to help create the legislative framework for those sales.

The stakes for getting it right are high. Virginia is projected to take in $400 million in annual revenue from the retail marijuana market over the next five years, according to Krizek.

Other proposed amendments discussed Tuesday examined who would receive licenses to sell marijuana. Under the proposed amendments, there will be a maximum of 350 licenses for retail establishments and 10 licenses for large cultivation facilities.

Pharmaceutical processors who have already been awarded permits by the CCA to grow and sell medical marijuana can obtain licenses for the retail market after paying a one-time $10 million conversion fee.

Some licenses will go to what’s being called impact licensees, a group formerly described by the General Assembly as micro-businesses. Impact licensees are intended to be individuals who meet criteria such as living in economically disadvantaged communities, being disproportionately policed for marijuana crimes in earlier years and/or qualifying for financial assistance from the U.S. Department of Agriculture as a distressed farmer in the last five years.

“Equity is not an afterthought,” Krizek said of the committee’s proposed amendments.

A direct-to-consumers license, which is also on the list of proposed amendments, would allow small operations to cultivate and process marijuana and sell marijuana and marijuana products to consumers through “age-verified delivery and limited on-site retail sales at their licensed premises.”

“That will help small businesses … to get going and have the resources then to invest and to be able to segue into a retail license,” Krizek explained.

If the proposed amendments discussed Tuesday pass the legislature, marijuana would be subject to a 12.75% Virginia sales tax and localities could issue additional local taxes of up to 3.5%. “If they want to go less, they can,” Krizek said.

The audience at Tuesday’s meeting was perhaps rowdier than others assembled at the General Assembly. One bearded attendee wore a flag emblazoned with a cannabis leaf tied around his neck as a cape.

The crowd voiced its opposition during the discussion of a proposed amendment to require a minimum distance between retail marijuana stores to one mile.

“My name is Mark. I’m just a guy,” one speaker told the commission during the public comment portion of the meeting. “About the mile distance between stores: It seems really strange to equivocate cannabis to … liquor when I can walk a block that way and buy as much beer as I want at 7-Eleven, it seems kind of unalike.”

Chelsea Higgs Wise, co-founder and executive director of Virginia-based nonprofit Marijuana Justice, said Tuesday she’s concerned that the state may launch the retail marijuana market too quickly. She wasn’t sure if the CCA would be able to hire, train and implement the needed regulatory staff by November 2026. Wise also asked whether impact licensees will be ready to sell that soon. If they’re not, only medical marijuana pharmaceutical operators will be able to sell by then.

Todd Gathje, vice president of government relations for The Family Foundation, a Christian conservative lobbying organization, spoke against the commission’s opposition to allowing localities to opt out of participating in the retail marijuana market. “We’re extremely discouraged by the fact that we’re not going to have some type of local referendum to allow localities to decide what’s going to be put in their localities,” he said.

The 2026 General Assembly session starts Jan. 14, 2026.

Curaleaf agrees to buy Central Virginia medical marijuana operation for $110M

SUMMARY: 

  • to purchase ‘s subsidiary that serves the Central Virginia market for $110M
  • Possible comes as Virginia is expected to soon launch adult-use market
  • Deal would include five retail locations, a retail location in development and about 82,000 square feet of cultivation and production capacity

The Cannabist Co., a Massachusetts-based multistate cultivator, manufacturer and retailer of marijuana products, has entered into an agreement to sell all ownership interests of its subsidiary that provides medical marijuana in Central Virginia for $110 million to a subsidiary of Connecticut-based marijuana products provider Curaleaf Holdings, the companies announced Tuesday.

Curaleaf Inc. will buy Green Leaf Medical of Virginia (branded as gLeaf Virginia), The Cannabist Co. subsidiary that cultivates, manufactures, distributes and sells medical marijuana in the greater region. The Virginia assets that are part of the purchase agreement under consideration include five retail locations, one additional retail location under development and about 82,000 square feet of cultivation and production capacity.

Followers of the marijuana industry would likely say it’s a good time to get into the medical marijuana business in the commonwealth. After Gov.-elect Abigail Spanberger is sworn in this January, many expect Virginia to quickly launch a retail marijuana market, long delayed under the administration of her Republican predecessor, .

“The fact that Virginia is poised to expand from medical to adult-use retail sales certainly makes such a purchase all the more enticing,” said JM Pedini, the development director of the National Organization for the Reform of Marijuana Laws (NORML), who also serves as executive director of the Virginia affiliate chapter.

Virginia’s medical marijuana program is divided into five health service areas (HSA). As designed, each area should have a single licensed pharmaceutical processor, which is the only authorized grower and dispenser of medical marijuana in that region. The subsidiary of The Cannabist Co. being sold serves the medical marijuana market in Virginia’s Health Service Area IV, which includes Richmond and other Central Virginia localities, as well as a few counties in Southern Virginia.

In 2024, the Virginia (CCA) took over regulatory oversight of Virginia’s medical marijuana program from the state Board of Pharmacy.

Jessica Fullerton, a spokesperson for the CCA, said the agency does not have the authority to review or approve ownership changes to pharmaceutical processor licenses before those changes take effect.

“At present, licensees are only required to notify the CCA when an ownership change occurs,” she said in a statement. “Following that notification, background checks are conducted on any new material owners.”

If closing conditions are met, Curaleaf plans to close the deal in the first quarter of 2026, according to a company news release. The transaction has a go-shop period in which the target company can seek competing offers. That ends Dec. 22.

If another bid is accepted or if The Cannabist Co. fails to receive noteholder consent for the purchase, Curaleaf will be entitled to a $3.3 million breakup fee as well as associated expenses up to $350,000.

The Cannabist Co., known as Columbia Care until 2023, took control of Virginia’s HSA IV license after its 2021 acquisition of Green Leaf Medical.

A spokesperson for Curaleaf did not respond to questions sent by Virginia Business, but did provide a link to a press release on the purchase agreement. The Cannabist Co. did not respond to a request for comment.

Earlier this year, The Cannabist Co. announced the formation of a special committee to consider asset sales, mergers or other transactions “in consideration of the ongoing operational and financial challenges for the company and the industry, as well as of the continuing uncertainty as to if and when U.S. federal regulatory changes may occur that will impact the company and the industry.”

Most companies in the marijuana industry are facing financial struggles, according to Pedini.

“It’s the cost of doing business in a highly regulated and federally illegal industry,” they said.

In August, The Cannabist Co. closed on the sale of a Pennsylvania affiliate, resulting in the sale of three dispensaries for $10 million. In November, the company completed the sale of its leasehold interest and equipment in a Florida cultivation facility for $11 million, with the potential of an additional $1 million if Florida legalizes adult use.

In 2024, Verano Holdings, a Chicago-based multistate company, closed on the acquisition of The Cannabist Co.’s subsidiary that was the sole vertical medical marijuana provider for HSA V, which encompasses the Hampton Roads region. The Cannabist Co. called that deal “a critical move for us as we continue our path of building a better business and reshaping our footprint to improve our financial footing, ultimately bringing us closer to profitability.”

Eric Postow, Fairfax-based managing partner for Holon Law Partners, said the purchase agreement signals greater dominance by multistate marijuana operators “in a Virginia market that was originally intended to be more Virginia-business-centric.”

“Curaleaf is a major national operator with a long regulatory history, and their entrance will reshape the competitive landscape here,” Postow wrote in an email.

As for Pedini, they didn’t hesitate when asked whether Virginia consumers will benefit if Curaleaf is able to acquire The Cannabist Co.’s subsidiary that serves HSA IV’s medical marijuana market.

“What’s good for Virginia consumers is having operators who can deliver medical cannabis that’s safe, convenient and affordable,” they said.

HSA I, the area that encompasses the Shenandoah Valley, Charlottesville and Fredericksburg, does not have a medical marijuana provider. In 2024, the CCA awarded a subsidiary of AYR Wellness a conditional approval to serve as that region’s pharmaceutical processor. Curaleaf was among 40 applicants, who each paid $18,000 in fees, to be considered for the HSA I license.

AYR Wellness, which is based in Miami, entered a restructuring agreement over the summer due to overwhelming debt.

Wall Street holds steadier as bond yields and bitcoin stabilize

Summary

  • S&P 500 rises 0.2% as markets steady after Monday’s dip.
  • Boeing jumps 10% and MongoDB surges 22% on strong results.
  • Bitcoin rebounds above $91,000 after sharp selloff.
  • Bond yields ease while consumer uncertainty weighs on retailers.

NEW YORK (AP) — The U.S. stock market held steady on Tuesday as both bond yields and bitcoin stabilized.

The S&P 500 rose 0.2% following its first loss in six days. The Dow Jones Industrial Average added 185 points, or 0.4%, and the Nasdaq composite gained 0.6%.

Boeing soared 10.1% and was one of the strongest forces lifting the S&P 500. Chief Financial Officer Jay Malave said the plane maker expects growth next year in an underlying measure of how much cash it produces.

MongoDB also helped lead the market and jumped 22.2% after the database company delivered stronger results for the latest quarter than analysts expected. United Natural Foods climbed 4.6% after reporting a stronger profit than expected.

They helped offset a 6.8% drop for Signet Jewelers, which gave a forecast for revenue in the holiday shopping season that fell short of analysts’ expectations. The jeweler said it’s expecting “a measured consumer environment.”

Another potential warning about U.S. shoppers’ strength came from the chief financial officer of Procter & Gamble, the giant behind Tide detergent and Ivory soap. Andre Schulten said the landscape for U.S. consumers is “volatile” at the moment, though still within the company’s expectations. Procter & Gamble slipped 1.1%.

The U.S. economy has been holding up overall, but that’s masking sharp divisions beneath the surface. Lower-income households are struggling with inflation that’s still higher than anyone would like. Richer households, meanwhile, are benefiting from a stock market that’s within 1% of its all-time high set in late October.

In the bond market, Treasury yields calmed following their jumps the day before. The 10-year yield edged down to 4.08% from 4.09% late Monday, while the two-year yield eased to 3.51% from 3.54%.

Higher yields can drag prices lower for all kinds of investments, and those seen as the most expensive can take the biggest hit.

Bitcoin, which tumbled below $85,000 on Monday as bond yields worldwide marched higher, pulled back above $91,000. That helped stocks of several crypto-related companies bounce back from sharp slides on Monday.

Strategy climbed 5.8% and more than made up for Monday’s loss. Coinbase Global gained 1.3%, and Robinhood Markets rose 2.2% to recover some of their drops from the day before.

All told, the S&P 500 rose 16.74 points to 6,829.37. The Dow Jones Industrial Average added 185.13 points to 47,474.46, and the Nasdaq composite gained 137.75 to 23,413.67.

Monday’s climb in Treasury yields came after the Bank of Japan hinted that it may raise interest rates there soon. But hopes are still high that the Federal Reserve will cut its main interest rate when it meets in Washington next week.

What comes after that for the Fed, though, is uncertain. The Fed has already cut its overnight interest rate twice this year in hopes of shoring up a slowing job market. But lower rates can fan inflation higher, and inflation has stubbornly remained above the Fed’s 2% target.

Complicating things is the U.S. government’s earlier shutdown, which delayed reports on the job market and other areas of the economy.

Investment giant Vanguard said its data suggest the U.S. labor market “remains stable but is still soft compared with last year.”

Overall hiring numbers are slower on a month-to-month basis. But fewer workers are going after job openings because of weaker immigration and an uptick in retirements, according to Adam Schickling, a senior U.S. economist at Vanguard. That in turn means hiring doesn’t need to be as strong as in the past to keep the unemployment rate steady.

In stock markets abroad, indexes moved modestly across much of Europe and Asia.

South Korea’s Kospi was an outlier and jumped 1.9% for one of the world’s bigger moves. Tech stocks helped lead the way, including rises of 2.6% for Samsung Electronics and 3.7% for chip company SK Hynix.

Costco seeks refunds as Trump tariffs face high court

Summary

  • files court action seeking refunds on Trump-era import tariffs.
  • to decide legality of the president’s sweeping duties.
  • Importers fear missing refund windows as tariff bills are finalized.
  • Revlon and Bumble Bee Foods have filed similar refund claims.

WASHINGTON (AP) — Costco is joining other companies that aren’t waiting to see whether the Supreme Court strikes down President Donald Trump’s most sweeping . They’re going to court to demand refunds on the tariffs they’ve paid.

The specialized in New York and the U.S. Court of Appeals for the Federal Circuit in Washington ruled earlier this year that Trump’s biggest and boldest import taxes are illegal. The case is now before the Supreme Court. In a Nov. 5 hearing, several of the high court’s justices expressed doubts that the president had sweeping power to declare national emergencies to slap tariffs on goods from almost every country on earth.

If the court strikes down the tariffs, importers may be entitled to refunds on the levies they’ve paid. “It’s uncertain whether refunds will be granted and, if so, how much,” said Brent Skorup, a legal fellow at the libertarian Cato Institute. ”But the possibility has prompted many companies — including Costco — to file actions in the U.S. Court of International Trade to get in line, so to speak, for potential refunds.”

Trump claims that he has an almost unlimited right to impose tariffs — a power the Constitution gives to Congress, under the 1977 (IEEPA) — but has now lost twice in court. Trade lawyer Joyce Adetutu, a partner at the Vinson & Elkins law firm, said that Costco is trying to “make sure that if and when the Supreme Court overturns the IEEPA tariffs, which could come as late as the summertime, they have the judgment in place” and can collect a refund.

In a complaint filed last week with the trade court in New York, Costco said it is demanding the money back now “to ensure that its right to a complete refund is not jeopardized.″

The operator of warehouse-sized stores expressed concern that it might struggle to get a refund once its tariff bills have been finalized — a process called “liquidation” — by the Customs and Border Protection agency, a process Costco says will start Dec. 15. Importers have 180 days after liquidation to protest the tariff bills. Costco worries that “their timeline might be whittled away depending on how long it takes to get a Supreme Court decision,” Adetutu said.

Revlon and canned seafood and chicken producer Bumble Bee Foods have made similar arguments in the trade court.

The tariffs facing the court challenge have raised around $90 billion so far.

It’s unclear how a refund process would work. As import tax bills are finalized and sometimes appealed, Customs and Border Protection “refunds tariffs every day, but not to this extent,” Adetutu said. “This is a substantial amount of tariff income that has been collected. And really there hasn’t been a case where there’s been an influx of refund requests.”

Trump warned back in August that the loss of his tariffs would destroy that American economy and lead to “1929 all over again, a GREAT DEPRESSION!”

Minimalist Prada buys maximalist Versace for $1.4 billion, in bid to relaunch sexier Milan rival

Summary

  • finalizes $1.38 billion cash deal to acquire .
  • to lead Versace’s next phase as executive chairman.
  • Versace seen as having major untapped growth potential despite recent struggles.
  • Prada plans to integrate Versace into its Italian manufacturing network.

MILAN (AP) — The Prada Group closed the purchase of Milan fashion rival Versace in a $1.375 billion cash deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada’s “ugly chic” aesthetic and Miu Miu ‘s youth-driven appeal.

The highly anticipated deal is expected to relaunch Versace’s fortunes, after middling post-pandemic performance as part of the U.S. luxury group .

Prada said in a one-line statement that the had been completed after receiving all regulatory clearances. Capri Holdings, which owns Michael Kors and Jimmy Choo, said the money would be used to pay down debt.

Donatella Versace welcomed the deal in an Instagram post, which also marked the birthday of the brand’s late founder, her brother, Gianni Versace.

“Today is your day and the day Versace joins the Prada family. I am thinking of the smile you would have had on your face,” she wrote in a post that also featured a 1996 photo of Gianni Versace with Miuccia Prada.

Versace’s future

Prada heir Lorenzo Bertelli is set to steer Versace’s next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief.

The son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli has said he doesn’t expect to make any swift executive changes at Versace, although he also noted that the company, which is among the top 10 most recognized brands in the world, has long been underperforming in the market.

Prada has underlined that the 47-year-old Versace brand offered “significant untapped growth potential.”

The appeal of the deal is that it combines “the minimalist Prada (with) a maximalist Versace,” said Luca Solca, for the luxury sector at the Sanford C. Bernstein research firm, meaning that the brands don’t compete for the same customers.

Versace is “long past its heyday,” Solca said. ”The challenge and the opportunity is to make it relevant again.. .. They are going to have to invent something which is going to make the brand attractive, desirable and interesting again.”

Versace already has begun a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Week in September. He was previously head of design at , but his move to Versace was unrelated to the Prada deal, executives have said.

The runway show received mixed reviews, but the collection itself — a colorful, revealing riff on the 1980s — got good feedback from buyers. “I think that this seems to be a promising first step,” Solca said.

Breaking from the past

Capri Holdings paid $2 billion for Versace in 2018, but had been struggling to position the brands’ bold profile in the recent era of “quiet luxury.″

Capri Holdings chairman John D. Idol said in a statement that “Prada is the ideal partner to guide this celebrated luxury house into its next era of growth.”

Versace represented 20% of Capri Holdings’ 2024 revenue of 5.2 billion euros.

Prada said when the deal was announced in April that Versace would represent 13% of the Prada Group’s pro-forma revenues, with Miu Miu coming in at 22% and Prada at 64%. The Prada Group, which also includes Church’s footwear, reported a 17% boost in revenues to 5.4 billion euros last year.

Prada’s in-house manufacturing

The Prada Group has already begun preparations to incorporate crosstown rival Versace into its Italian manufacturing system, a point of pride for the group.

“Making a bag for one brand or another, the know-how is the same,” Bertelli told reporters last week at the group’s Scandicci leather goods factory, which already makes bags for the Prada and Miu Miu brands and will soon add Versace.

Artisans stitched handles onto leather bags, and cut leather with laser machines inside the leather goods factory, where trainees were learning the trade as part of Prada’s 25-year-old academy. It has trained some 570 new artisans in an in-house training program in the Tuscany, Marche, Veneto and Umbria regions.

Last year, Prada hired 70% of the 120 artisans who trained in the academy. The number of trainees rose by 28% to 152 this year.

The Prada Group has invested 60 million euros in its supply chain this year, including a new leather goods factory near Siena, a new knitwear factory near Perugia, as well as increasing production at its Church’s footwear factory in Britain and expanding another Tuscan factory. That’s on top of 200 million euros in investments from 2019-24.

Brown Edwards acquires Lynchburg-based accounting firm

Roanoke-based accounting firm announced Tuesday that it has acquired accounting practice , which specializes in construction.

The financial terms of the deal were not disclosed. According to a Brown Edwards spokesperson, the will add eight from Shelton — including three certified construction industry financial professionals — to the firm, bringing its total to 56 partners and a staff headcount of 465.

In a statement, Brown Edwards CEO Laura Sprouse said she was “thrilled” to welcome the Shelton team.

“Their deep expertise in construction accounting and strong client relationships align perfectly with our mission to provide exceptional service and innovative solutions,” Sprouse said. “Together we will deliver even greater value to all our clients through expanded services and deeper resources.”

Fred C. Shelton Jr. founded Shelton & Co. in 1991 to provide public accounting services to the construction industry. The firm developed a clientele of contractors across Virginia and the mid-Atlantic​ and later established relationships in the bonding and banking industries.

Shelton’s leadership team, including Chad Maddox, Mark Carlson and Chad Gunter, will join Brown Edwards as partners. ​​A spokesperson said they will continue to serve their clients while enhancing the construction-related accounting services offered by Brown Edwards.

“Joining forces with Brown Edwards marks an exciting new chapter for us,” Maddox said in a statement. “Their resources and expertise will allow us to continue delivering the personalized service our clients value and what they have come to expect, while expanding the opportunities and expertise we can offer.”

Shelton’s clients will continue to work with their existing teams while also gaining access to Brown Edwards’ resources.

Last month, Brown Edwards announced it had acquired Virginia Beach-based DesRoches & Co., adding 25 associates to the firm.

Brown Edwards reported approximately $88 million in fiscal 2024 revenue. In 2024, the firm ranked No. 69 in Inside Public Accounting’s Top 500 CPA firms ranking, which is based on net revenue. Forbes named it to the 2023 America’s Best Tax and list.

Sterling drone startup joins unicorn ranks

Heven AeroTech, a -based developer of hydrogen-powered , has raised $100 million in a round that elevates it to status.

The company announced the investment, which brings the company’s valuation to $1 billion, on Monday. Maryland-based quantum computing company IonQ led the funding round, alongside returning investors like Texas Venture Partners.

said the funding will allow it to meet demand from the U.S. Special Operations Command, combatant commands and allied forces for long-endurance, energy-independent unmanned aerial systems.

“Reaching unicorn status validates not just our technology, but our execution,” Heven founder and CEO Bentzion Levinson said in a statement. “This capital will enable us to scale U.S. manufacturing capacity, accelerate quantum-enabled capabilities across our platform and deliver long-endurance hydrogen-powered systems at the speed and volume our national security customers demand. We’re building for the battlefield of today and tomorrow.”

The Series B investment will specifically go toward expanding U.S. manufacturing capacity and developing hydrogen generation and logistics infrastructure. It will also fund the development of quantum-secure communications, navigation systems for GPS-denied environments and AI-powered autonomous operations.

Heven said it will leverage its collaboration with IonQ and immediately launch a quantum-focused engineering division that will emphasize integrating quantum computing capabilities directly into Heven’s platforms.

Founded in 2019, Heven specializes in the development and manufacturing of hydrogen fuel cell-powered, long-endurance aerial vehicles for defense and commercial applications. Its flagship product is the Z1 drone, which offers flight times exceeding 10 hours and a range of over 600 miles.

The company, which has global operations, relocated its headquarters from Miami to Sterling in October, a move that brought it closer to its customers in the National Capital Region. The company said the move and expansion would create 150 jobs nationwide, including 40 positions at the Sterling facility.

Heven did not immediately return requests for comment.