Who owns Chanel – the French fashion house synonymous with Karl Lagerfeld?

Karl Lagerfeld worked at Chanel for nearly four decades (Picture: Reuters)

Karl Lagerfeld’s name is synonymous with french fashion house Chanel, with the late designer having worked there for nearly four decades.

Founded in 1909, this year marks its 110th birthday.

But it also now marks the passing of its most legendary designer Karl Lagerfeld, who died on 19 February following weeks of ill health.

A number of famous faces have paid tribute to the German designer, who is often confused with being the owner of Chanel due to his close ties with the label.

Here, we take a look at what Karl’s role was at the fashion house and who really owns it.

Does Karl Lagerfeld own Chanel?

No, Karl Lagerfled does not own Chanel.

Karl was made the chief designer for Chanel in 1983 and worked their ever since, later taking on the roll of creative director.

Who owns Chanel then?

The private company is owned by brothers Alain Wertheimer and Gerard Wertheimer.

They are the grandsons of Pierre Wertheimer. Pierre was an early business partner of Gabrielle Bonheur Chanel, French fashion designer and the namesake for the brand. She is better known as Coco Chanel.

Chanel owners Alain Wertheimer and brother Gerard Wertheimer (Picture: Julien Hekimian/WireImage)

In the early 1900s, Gabrielle opened a clothing store at 160 Boulevard Malesherbes in the ground floor of a Parisian flat.

She would go on to sell hats and women’s clothing with a military influence, given the timing with the First World War.

It was in 1922, after successfully designing sought-after clothes for women, such as the famous Chanel suit, that she decided to venture into perfumery and tasked Parisian perfumer Ernest Beaux to crate a scent for the House of Chanel.

Chanel No.5 was then born, its name originating as it was the fifth tester Gabrielle tried that she liked the most.

In the late 1920s, Gabrielle wanted to expand her perfume business but, realising she needed help, approached Theophile Bader, who introduced her to Pierre.

This lead to the formation of Parfums Chanel, with Pierre owning 70%. Bader 20% and Chanel herself just 10%.

As the years went on and the business continued to grow, a restless Gabrielle felt she had been exploited for her business know-how and design brain by Pierre and she wanted more of the share of profits. But Pierre had always managed to push back.

That is until 1947 when Chanel decided she would start a rival perfumery and, realising what was at stake, given he didn’t own exclusivity of the name Chanel, Pierre struck a deal.

Queen Elizabeth II presents the trophy to owners Alain Wertheimer and Gerard Wertheimer, after their horse Solow won the Queen Elizabeth II Stakes Race run during the QIPCO British Champions Day at Ascot Racecourse in October 2015 (Picture: Getty Images/Getty Images)

Gabrielle was given the wartime profits of the sale of Chanel No.5, which amounted to $400,000 in cash (£309,000), a 2% royalty of all sales of the No. 5 perfume and given more money to cover her expenses for expansion.

She later closes her own perfumery and sold the rights, as well as the rights to the name Coco Chanel, back to Parfums Chanel.

Eventually, Pierre bought Bader’s 20%, resulting in him having 90% of the share and as the House of Chanel grew and he continued to help financially, he was given the commercial rights to all Chanel-branded products.

Pierre’s son Jacques took over in 1965, with his son Alain gaining control in 1974.

In the mid-70s, Chanel No.5 was not selling well so Alain revamped the business by making the stock more exclusive and stocking the bottles in fewer shops, as well as investing in elaborate advertising campaigns for the brand. Celebrities including Audrey Tautou and Marilyn Monroe endorsed the perfume, too.

It was Alain who, in 1983, persuaded Lagerfeld to end his contract with rival fashion house Chloe to join Chanel as the chief designer.

German designer Karl Lagerfeld (Picture: Reuters)

Alain and Gerard chose to stay out of the limelight, instead using Karl as the face of their company.

‘We’re a very discreet family, we never talk,’ Gerard once told the New York Times in a February 2002 interview. ‘It’s about Coco Chanel. It’s about Karl. It’s about everyone who works and creates at Chanel. It’s not about the Wertheimers.’

In 2018 Chanel revealed it is a $10billion (£7.7bn) company.

Its chief financial officer Philippe Blondiaux said in a statement: ‘The report was put together to emphasise the strength of our balance sheet.

‘We are a $10 billion dollar company, we have 11 per cent organic growth. We have no debt. We have $1.6 billion cash. All this is important. It provides us the ammunition to remain who we are: private and independent.’

MORE : PETA are already dancing on Karl Lagerfeld’s grave

MORE : What is Karl Lagerfeld’s net worth and how long was he the creative director at Chanel?

MORE : Chanel designer Karl Lagerfeld dead at 85