Not Karl, not Coco: Meet the billionaire brothers who secretly own Chanel

The story of Chanel begins with an orphan who learnt to sew in a convent. Through hard work, patience, ambition, and skill, she created the second-most successful luxury brand in the world today. It was none other than Coco Chanel, whose legacy still rings true today, making her an unforgettable businesswoman and an enduring fashion icon.Chanel is one of the world’s best-known luxury labels, but have you thought about who its current owner is? Rarely photographed, the Wertheimer brothers own the $20 billion brand, a fact that remains a mystery to many. Alain and Gérard Wertheimer are more likely to be seen on a horse racing track than at a fashion event. Even when they attend Chanel shows, they usually keep a low profile, sitting in the third or fourth row. But how did this happen?Well, today Alain and Gerard have fortunes worth US $46.9 billion, where their wealth stems from the fact that in 1925, their grandfather Pierre Wertheimer and his brother Paul struck a deal with Gabrielle Chanel, who was already a famous name in the fashion industry. The duo then founded the Société des Parfums Chanel to sell and produce Chanel beauty products.How did they meet?Théophile Bader, the cofounder of the Galeries Lafayette department store, introduced her to Paul and Pierre Wertheimer at the racetrack in Deauville, France. This was the place where Chanel opened her first boutique in 1912 and instantly became popular for creating a sportswear line. The partnership termsSince Ernest Wertheimer invested in cosmetics maker Bourjois in the 19th century, they gained the logistical power to produce and distribute Chanel fragrances across the globe. Under the partnership terms, the Wertheimers owned 70 per cent of the company, whereas Bader had 20 per cent, and Chanel herself had only 10 per cent. This led to conflict; in 1928, Chanel contested the terms and launched a barrage of legal procedures. A scandal unfoldedDuring World War II, the Wertheimers fled from NYC to France, and Chanel closed her couture house, leaving only a perfume boutique open. To protect the brand from Nazi looting, the Wertheimers sealed an agreement with a French industrialist, giving him temporary ownership of the business. But Chanel was already having an affair with a Nazi officer, who attempted to reclaim her business. Eventually, Chanel’s attempts to oust them from the company failed, and sole ownership shifted to the Wertheimers after the war ended. After Paul’s death, his brother purchased his share and negotiated a revised partnership with Coco Chanel and Bader Associates. This sane decision created generational wealth, leaving Pierre’s son Jacques in charge. He was the father of two boys, Alain and Gérard, who are currently the secretive owners of Chanel.Since the two brothers took over after their father passed away, Alain’s key move was appointing Karl Lagerfeld as Creative Director of the brand in 1983 and creating the interlocking-C logo. As of today, the duo ranks third among France’s top 500 fortunes, where they have an estimated fortune of 115 billion euros.