Fashion

The Wertheimers: who are the mysterious owners of Chanel?


“Chanel will remain
private and independent,” stated Philippe Blondiaux, financial director of
the Luxury House, when presenting its 2018 earnings in June. The
announcement softened speculation surrounding a possible change of
ownership for the house, something which intensified following the death of Karl Lagerfeldin February.

In 2018, sales at the company rose 10.5 percent in constant currencies
to reach 9.95 billion Euro, driven by sales in the Asia-Pacific region,
which were up 19.9 percent, ahead of Europe, up 7.8 percent and the
Americas, up 7.4 percent.

In fact, Karl Lagerfeld’s death last February revived speculation that
the owners of Chanel – the Wertheimer family – could sell the House or
request an IPO. However, during the “Journée de l’Investisseur” (Investor
Day) in Paris, LVMH stated that Chanel had a value that is closer to
100,000 million euros, rather than the 50,000 estimated by some
analysts.

Chanel, one of the world’s most prestigious French luxury houses,
continues to generate mystery around itself and this certainly adds to its
allure. Chanel is not part of the two major fashion and high-end
conglomerates in the world, LVMH and Kering, owners of the leading
companies in this segment. The company, founded by the legendary Coco
Chanel in 1910, has always been sheltered from the power struggle between
the two conglomerates, and has not dependent on foreign capital to continue
to dictate global trends. And although enjoying substantial financial
backing, the company has continued to be run by the Wertheimer family for
three generations.

The Wertheimers: a clan of Jewish origin

In 1924, Coco Chanel allied with Pierre Wertheimer, a businessman from a
family of important merchants, to form Parfums Chanel with the aim of
extending its Chanel N° 5 fragrance to a wider audience. The Chanel group
therefore gradually became constituted of multiple activities, notably
watchmaking or lingerie with brands Bell & Ross or Eres.

Since then, Chanel has been handed down from Wertheimer father to son
and, since 1974, has been managed by Gerard and Alain, the grandsons of
Pierre and sons of Jacques. And, apparently, it is they who have taken the
best decision yet: hiring the best designer of the time, the late Karl
Lagerfeld. While preserving the legacy of Coco Chanel, he introduced his
particular avant-garde touch, knowing how to set the tone for international
fashion right up to his last days. Another strategic point for the
Wertheimers: Karl’s comments were often controversial, all the more useful
for keeping a low profile in the shadow of his brilliant and extremely
mediatised character.

Discretion: the key word of great people

“To live happily, we live hidden” they say, and discretion is one of the
maxims of the Wertheimer brothers – and for good reason. While it is no
secret that one of the brothers lives in Switzerland and the other in the
United States, their appearance in public is always extremely rare and
well away from the spotlight. An attitude that is also encountered in the
largest fortunes of luxury and fashion – for example, Hermes or Inditex. In
the case of Amancio Ortega, at the head of the fast fashion Spanish group
(Zara, Bershka, etc.), he appears but very rarely in public and does not
give interviews. The multimillionaire, however, did recently attend the
wedding of his daughter Marta Ortega, appearing relaxed in front of the
press. Using the same formula -“hidden” and in a luxury segment – Alain and
Gérard Wertheimer have succeeded in positioning Chanel among the best
brands in the world.

Photo: Lajos-Eric Balogh / picture alliance / dpa Picture-Alliance /
AFP



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