The people behind the business of Chanel
Illustration by Evan Kenaz Lee/THE FINERY REPORT
Apart from being founded by Coco Chanel, there are not many publicity surrounding the current shareholder of Chanel S.A. The Wertheimer brothers maintain low-profile life, avoiding the media spotlight at all cost. The brothers barely attend Chanel store opening or events and prefer to sit on third or fourth row at Chanel fashion show.
In 2002, Gerard Wertheimer told New York Times magazine, “It’s about Coco Chanel. It’s about Karl [Lagerfeld]. It’s about everyone who works and creates at Chanel. It’s not about the Wertheimers.”
1922
Théophile Bader, founder of French department store Galeries Lafayette, introduced Pierre Wertheimer to Coco Chanel at Longchamp horse race.
1924
Pierre Wertheimer made an agreement with Coco Chanel to use her name in perfume without her involvement in business operation. Les Parfums Chanel was founded in 1924 with Pierre Wertheimer owning 70% stake while Théophile Bader and Coco Chanel owned 20% and 10%, respectively.
1935
The success of the perfume soured Chanel’s relationship with Pierre Wertheimer. Chanel instigated lawsuits in effort to gain more stakes.
1941
Coco Chanel attempted to assume business controls of Les Parfums Chanel during Nazi occupancy throughout Europe. The Nazis seized all Jewish-owned businesses. Chanel used this to send a letter to the general in charge of administrative.
Unfortunately, the Wertheimers saw the forthcomings and had French industrialist Félix Amiot took over the company before they left Paris. Amiot later gave back the company to Wertheimer post war. Petitioned
1944
Coco Chanel was exiled to Switzerland for 8 years due to the rumours of her collaboration with Nazi. In Switzerland, she established Swiss perfumery to create, produce and sell ‘Chanel perfumes.’ This affected reputation and business interest of Les Parfums Chanel as Wertheimer didn’t have exclusive rights to Chanel name.
1947
Pierre Wertheimer and Coco Chanel settled out of court. Chanel received wartime profits $400,000, assigned 2% royalties from the sales of No. 5 perfume and granted monthly income that paid all her expenses for her lifetime.
1954
Approached Pierre Wertheimer to launch House of Chanel. Pierre Wertheimer bought Bader’s 20% stake, making him own 90% of House of Chanel.
1965
Pierre Wertheimer passed away. His son Jacques Wertheimer took over Chanel.
1971
Coco Chanel passed away at her apartment in Paris.
1974
Jacques Wertheimer’s son, Alain Wertheimer, took the helm at Chanel after convincing board of trustees.
1983
The Wertheimer brothers appointed Karl Lagerfeld as creative director of Chanel.
1996
Chanel S.A. passed on to Jacques Wertheimer’s sons, Alain and Gerard, after his death. Both remained as chairmen of the company until today.
2007
Maureen Chiquet appointed as CEO until her termination in 2016.
2016
Nick Hochland succeeded as CEO. The company spent $1.457 billion in marketing, advertising and fashion shows.
2018
Chanel S.A. published its financial report for the first time and the report shows that the company generated $9.6 billion sales in 2017. It also announced the moving of its global headquarter to London.
2019
Karl Lagerfeld passed away and Virgnie Viard named as new creative director.
Chanel, one of the most influential luxury brands in the world, was founded in 1909 by Gabrielle Chanel.
90% of Chanel shares were owned by Pierre Wertheimer. It passed down to his son, Jacques Wertheimer, after his death and then to Jacques’ son, Alain and Gerard Wertheimer.
Current owners of Chanel, Alain and Gerard Wertheimer, are reported to have combined net worth of $42 billion.
Like any other companies, Chanel had its turbulent period where it almost went through financial collapse.
The Wertheimer brothers then appointed Karl Lagerfeld as creative director in 1983 to revive Chanel.
Last year, the luxury powerhouse recorded $11 billion sales, up from $9.62 billion in 2017.
Key figure
Gabrielle Chanel
Pierre Wertheimer