Meet the Wertheimers, the owners of Chanel | The Archive

One of the few luxury fashion houses not amassed by conglomerates LVMH or Kering, Chanel has been privately owned by the Wertheimer family for almost a century. But, who are they? In stark contrast with their competitors, namely Bernard Arnault and François Pinault, the Wertheimers have been described as “fashion’s quietest billionaires.”(From article by Business Insider) As they are very discreet, not much about their personal lives or business dealings is made public. 

Here is what is known. 

In 1922, Théophile Bader, founder of the upscale department store Galeries Lafayette, introduced Coco Chanel to Pierre Wertheimer at the horse races. Pierre, a renowned breeder, had recently inherited Bourjois, the largest and most successful cosmetic and fragrance company in France, from his father; while, just the year prior, Coco had developed Chanel No. 5 with famous perfumer Ernest Beaux. The signature scent was only sold in Chanel’s Paris boutiques, but Coco wanted to make it available to more of her clientele, so the three new friends struck a deal: Pierre formed Parfums Chanel, which would finance the production, marketing, and distribution of Chanel No. 5 (giving him 70% ownership), Galeries Lafayette would sell it (giving Bader 20% ownership), and Coco would license her name to it (giving her 10% ownership). However, the relationship between Coco and Pierre quickly soured. 

As sales soared and Chanel No. 5 became Coco’s best-selling creation, she began to resent their agreement. Believing Pierre was exploiting her creative talents for his own profit, Coco hired an attorney and attempted to renegotiate the terms. She was unsuccessful, and Pierre maintained majority ownership.