Pierre Wertheimer - "Parfums Chanel"

"Parfums Chanel"

In 1924, Coco Chanel made an agreement with the Wertheimers creating a corporate entity, "Parfums Chanel."

Chanel believed that the time was opportune to extend the sale of her fragrance Chanel No. 5. to a wider customer base. Since its introduction it had been available only as an exclusive offering to an elite clientele in her boutique. Cognizant of the Wertheimer’s proven expertise in commerce, their familiarity with the American marketplace, and resources of capital, Chanel felt a business alliance with them would be fortuitous. Théophile Bader, founder of the Paris department store, Galeries Lafayette, had been instrumental in brokering the business connection by introducing Pierre Wertheimer to Chanel at the Longchamps races in 1922. Bader was interested in inaugurating the sale of Chanel No. 5 in the Galeries Lafayette, distinguishing his store as the first venue to offer the fragrance to the general public.

For a seventy percent share of the company, the Wertheimers agreed to provide full financing for production, marketing and distribution of Chanel No. 5. Théophile Bader was given a twenty percent share. For ten percent of the stock, Chanel licensed her name to "Parfums Chanel" and removed herself from involvement in all business operations. Ultimately displeased with the arrangement, Chanel worked for more than twenty years to gain full control of "Parfums Chanel." In 1935, Chanel instigated a lawsuit against the Wertheimers, which proved unsuccessful.

World War II brought with it the Nazi seizure of all Jewish owned property and business enterprises, providing Chanel with the opportunity to gain the full monetary fortune generated by "Parfums Chanel" and its most profitable product, Chanel No. 5. The Wertheimers, were Jewish, and in May of 1941, Chanel used her position as an "Aryan" to petition German officials to legalize her right to sole ownership. Chanel was unaware that the Wertheimers, anticipating the forthcoming Nazi mandates against Jews had taken steps to protect their interests. Prior to fleeing France for New York in 1940, they had legally turned control of “Parfums Chanel” over to a Christian, French business man and industrialist, Felix Amiot. At war's end, Amiot turned "Parfums Chanel" back over to the Wertheimers.