Fashion

Chanel valued at 100 billion euros


Chanel valued at 100 billion euros

If anyone was thinking to purchase Chanel from the Wertheimer family, they
can try again, unless they have 100 billion euros lying around. LVMH has
expressed interest in purchasing what appears to be the most profitable
luxury fashion house in the world after the death of their legendary
artistic director Karl Lagerfeld, but LVMH analysts told investors at an
investor day in Paris this week that Chanel is worth nearer to 100 billion
euros, more than the 50 billion euros previously estimated.

If that price tag appears to be a lot for the world’s largest luxury player
to swallow. Earlier this year, Alain and Gerard Wertheimer went on record
to say that Chanel was not for sale, although they have both reached
retirement age. Chanel’s perfumes, handbags, and tweed jackets are some of
the biggest cash cows in the fashion industry, and that doesn’t even speak
to the brand’s entire portfolio of offerings which range from fine jewelry
to sunglasses.

The more likely exit route for the Wertheimer’s given the vast price tag of
Chanel would be for the company to launch an IPO, but for a company that
has historically been private for so long, bringing in a board of directors
and the design team having to answer to shareholders might not go over
well.

In layman’s terms, Chanel is too big to acquire. No other luxury player
would want to eat up that cost of purchasing it, and 100 billion dollars is
a lot of capital to acquire. Unless the Rothschild’s or Morgan’s want to
step in, the Wertheimer’s will have to seek alternatives as to what to do
with Chanel if and when they decide to relinquish the company.

photo: Chanel.com



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