Meet the Wertheimers, the secretive French brothers worth $96 billion who control Chanel, own vineyards in France and Napa Valley, and breed racehorses

Alain and Gerard Wertheimer
The brothers have a combined net worth of $96 billion.
  • The Wertheimer fortune dates back to 1920s Paris when Pierre Wertheimer funded designer Coco Chanel.
  • His grandsons, brothers Alain and Gerard Wertheimer, control Chanel and are worth about $96 billion.
  • The brothers own three vineyards in France and Napa Valley, and breed and race thoroughbreds. 
Alain, 74, and brother Gerard Wertheimer, 71, both have fortunes worth $48 billion for a combined net worth of $96 billion.
Alain and Gerard Wertheimer
Alain Wertheimer and his brother, Gerard, attend the Prix de Diane Longines at Hippodrome de Chantilly on June 12, 2011 in Chantilly, France.

Source: Bloomberg

Their wealth stems from their grandfather's acquisition of French fashion house Chanel. Back in 1925, their grandfather, Frenchman Pierre Wertheimer, and his brother Paul, struck a deal with Gabrielle "Coco" Chanel.
Pierre Wertheimer
Pierre Wertheimer with the trophy after his horse, Lavandin, won the Epsom Derby on June 6, 1956.

Source: The New York Times

They founded Société des Parfums Chanel with the aim of selling and producing Chanel beauty products. Chanel herself saw it as an opportunity to get her signature fragrance, Chanel No. 5, into the hands of more customers.
coco chanel 1929
Coco Chanel in 1929.

Source: The New York Times

Before 1924, the fragrance was only available to exclusive clientele at Chanel's Paris boutiques.
Chanel No 5
A bottle of Chanel No. 5.

Source: The New York Times

Chanel was a Nazi sympathizer and was well-connected in the world of prominent Nazis. She dated a Gestapo spy and appeared to have worked as an informant during World War II, though she was never charged.
Coco Chanel lounging on a couch in front of bookshelves
Gabrielle "Coco" Chanel relaxes in her book-lined studio above her Paris salon on April 21, 1954.

Source: PBS

In 1941, Chanel tried to legally wrest control of the company from Pierre Wertheimer. The Wertheimers were Jewish and, at that time, owned over 50% of the fashion house. Chanel attempted to use a law that banned Jews from owning businesses.
coco chanel
An undated photo of French fashion designer Gabrielle "Coco" Chanel.

Source: The Guardian 

But Chanel was unsuccessful, as the Wertheimers had secretly handed off their stake to another French businessman before fleeing France during the Nazi occupation. In 1954, Pierre Wertheimer took full control of the company in exchange for promising to pay Coco Chanel's bills and taxes from then on. She died 17 years later.
People sit in crowded space watching model wearing Chanel walk down runway
A Chanel fashion show in 1971.

Source: The Guardian, Bloomberg

Pierre died in the 1960s, and control of the company passed to his son, Jacques. In 1973, at 25 years old, Jacques' son Alain convinced the board of trustees to let him take over the company.
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Alain Wertheimer in 2013.

Source: The New York Times

The brothers assumed the roles of co-owners of the House of Chanel in 1996. Alain serves as chairman while Gerard heads the company's watch division from his home in Geneva. They are the third generation to run the over 110-year-old company.
alain and gerard wertheimer.JPG
Alain and Gerard Wertheimer.

Source: Forbes, The New York Times

The New York Times once described the brothers as "fashion's quietest billionaires." Gerard told The Times' magazine in 2002 that the family prefers being discreet. "It's about Coco Chanel. It's about Karl [Lagerfeld]. It's about everyone who works and creates at Chanel. It's not about the Wertheimers," he said at the time.
Alain and Gerard Wertheimer
Gerard, left, and Alain Wertheimer at the Prix de l'Arc de Triomphe at the Hippodrome de Longchamp in 2006.

Source: The New York Times Magazine, The New York Times

In 1983, the Wertheimer brothers appointed Karl Lagerfeld as the artistic director of Chanel's fashion division.
Lagerfeld and Wertheimer
Karl Lagerfeld, right, talks with Gerard Wertheimer in 2007.

Source: The New York Times Magazine

The New York Times called Lagerfeld the most "prolific designer" of the 20th and 21st centuries.
Karl Lagerfeld
Karl Lagerfeld in 1983 at the studio of another French fashion house, Chloe.

Source: The New York Times

Lagerfeld spent three decades overseeing design for Chanel, revolutionizing the brand and saving it from a potential financial collapse.
karl lagerfeld

Source: Insider

"When I took on Chanel, it was a sleeping beauty. Not even a beautiful one. She snored," Lagerfeld said in a 2007 documentary called "Lagerfeld Confidential." "So I was to revive a dead woman."
Lagerfeld

Source: Insider

 

Lagerfeld died in February 2019, and a tribute was held in Paris that June to remember the fashion icon. Celebrities including Tilda Swinton, Cara Delevingne, Helen Mirren, and Pharrell Williams attended.
Chanel

Source: Vogue

Even as Chanel regained its prominence in the fashion world and the Wertheimers' fortune grew, they remained low-key and press-shy. If they attend a Chanel fashion show, they drive themselves, and then sit in the third or fourth row.
Chanel Summer 2019 collection
Models walk the runway at the Chanel Haute Couture Spring Summer 2019 fashion show as part of Paris Fashion Week on January 22, 2019.

Source: The New York Times Magazine

The brothers never attend the opening of Chanel stores, nor do they publicly comment on the business.
People wait in line outside Chanel store
Shoppers wait to get into a Chanel boutique in London.

Source: The New York Times Magazine

Before 2018, Chanel never announced sales numbers, leaving the industry to merely guess its worth. When the company did finally release financials for the first time in 108 years, it reported total sales for the 2017 calendar year of $9.62 billion.
Shopping at Chanel

Source: The New York Times

Alain and Gerard haven't shared publicly who will take over Chanel and whether it will stay in the family's control, though they are both married with three and two children, respectively.
Wertheimer
Gerard and Alain Wertheimer.

Source: The New York Times, Bloomberg

Like the generations that preceded them, the brothers are heavily involved in horse racing. Their grandfather, Pierre, bred and raced thoroughbreds — in fact, it was at the races where Coco Chanel and Pierre met.
Pierre Wertheimer
Owner Pierre Wertheimer leads colt Lavandin, with jockey Rae Johnstone, after victory in the English Derby at Epsom Downs in 1956.

Source: The New York Times

The brothers inherited Wertheimer et Frère, the family's horse-racing and breeding business. Gerard Wertheimer oversees the family's horse stock.
GettyImages 50956383
Alain Wertheimer and Gerard Wertheimer, owners of the House of Chanel, with jockey Olivier Peslier attend the Prix de Diane Hermes on June 13, 2004.

Source: Insider, The New York Times

In 1995, it was estimated that the family owned close to 200 horses across its four ranches in Chantilly, France; California; Kentucky; and the family's stud farm in Normandy, France.
GettyImages 165437524
Gerard Wertheimer attends the 'Cravaches D'Or' Awards 2013 At Theatre des Champs Elysees In Paris.

Source: The New York Times

Wertheimer horses have won the Breeders' Cup four times. In 2015, one of their horses won the Queen Elizabeth II Stakes Race in 2015. Queen Elizabeth II presented the trophy to the Wertheimers following the race that bore her name.
Alain and Gerard Wertheimer
Queen Elizabeth II presents the trophy to owners Alain Wertheimer and Gerard Wertheimer, after their horse Solow won the Queen Elizabeth II Stakes Race in 2015.

Source: Kentucky Derby, Bloodhorse

In 1994, the brothers bought Bordeaux winery Chateau Rauzan-Segla.
GettyImages 117581985

Source: Bloomberg

Chanel bought the St. Supery winery in California's Napa Valley the same year. The purchase of the St. Supery winery cemented the brothers' status in the wine industry.
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A worker drives a tractor through the vineyard at St. Supery Winery September 20, 2006, in Rutherford, California.

Source: The Wall Street Journal

Also in 2015, the brothers finished the renovation of Chateau Canon. Chateau Canon has six bedrooms, but is not a hotel — guests can only stay if they're invited. The Wertheimer family and their guests can often be found in the château in the summer, according to The Wall Street Journal.
GettyImages 117582034
Vineyards at Chateau Canon 1er Grand Cru Classe, St Emilion in the Bordeaux wine region of France, seen here in 2010.

Source: The Wall Street Journal

The brothers also have a 1% stake in Ulta, the beauty store chain worth nearly $27 billion.
ulta store

Source: Bloomberg

Alain Wertheimer owns a Connecticut country house and a "grand apartment on Fifth Avenue," according to The New York Times. Chanel's executive offices are on 57th Street, only a short distance from Alain's home.
New York
New York City's Upper East Side.

Source: The New York Times

Gerard is said to own a secluded, French-style mansion in the Vandœuvres region of Geneva, Switzerland.
Geneva, Switzerland
A nighttime view of Geneva, Switzerland.

Source: The New York Times

The Wertheimer family enjoys shooting game at their chateau in France's Loire Valley and skiing at their chalet in the Swiss Alps. As of 2002, the brothers owned eight homes around the world, The Times reported.
GettyImages 1126901363
This is not the chateau the Wertheimer brothers own in Loire Valley.

Source: The New York Times

The Wertheimers have a vast art collection that includes pieces by Picasso and Matisse, but they don't loan any of the pieces out and they don't allow them to be photographed.
picasso painting art sothebys
"Tete De Femme" by Pablo Picasso up for auction at Sotheby's in London, England.

Source: The New York Times

As for Chanel, it now has storefronts all over the world and is headquartered in Paris, France.
Chanel
Chanel headquarters in Paris, France.

Source: Forbes

The fashion house reported over $15 billion in revenue in 2021, up over 20% compared to 2019. While the company hasn't released its 2022 financials, its CFO said last May that Chanel was experiencing double-digit growth in 2022.
incheon seoul south korea airport chanel store

Source: WWD

Like other luxury-goods companies, Chanel has started catering to its high-net-worth customers, who have remained resilient amid economic upheaval. The brand's handbags, already a luxury item, rose in price three times between 2021 and 2022. And Chanel said last year that it plans to open boutiques specifically geared toward its highest-spending clients.
Chanel storefront

Source: The Wall Street Journal, Business of Fashion

Read the original article on Business Insider


Contributer : Business Insider https://ift.tt/N7tICy9
Meet the Wertheimers, the secretive French brothers worth $96 billion who control Chanel, own vineyards in France and Napa Valley, and breed racehorses Meet the Wertheimers, the secretive French brothers worth $96 billion who control Chanel, own vineyards in France and Napa Valley, and breed racehorses Reviewed by mimisabreena on Sunday, May 21, 2023 Rating: 5

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