05 March 2024

Brilliant business family Wertheimers and Coco Chanel

Ernest Wertheimer (1852-1927) emigrated from Alsace to Paris in 1870, during the Franco-Prussian War. Ernest purchased an interest in the innovative theatrical make-up company, Bourjois. Later his sons Paul (1883–1948) & Pierre Wert­h­eimer (1888–1965) joined their dad in the family business, Bour­jois. In 1905, Pierre left for Lon­don and Paul moved to New York, making Bour­jois an international enter­pr­ise. Their Rochester NY facility manuf­actured and dist­rib­uted Helena Rubin­s­tein’s line face creams.

 Pierre (top) and Paul Wertheimer

Both brothers married in 1910, and both had babies. But the joy ended when the new fathers were mobilised in WW1. By the time the sons took over the company’s direct­or­ships, Bourjois became the largest cosmetic-fragrance com­p­any in France. In the next decade, Bourjois had already signed licences in 100+ countries – a huge success!

Pierre was also an avid horseman who began a great racing dynasty, important in the Wertheimer story because it was at Longchamp racetrack that Pierre Wert­heimer met Coco Chan­el. They were introd­uced by Théophile Bader, founder of Galeries Lafay­ette.

In 1922, Chanel’s #5 perfume was launched. It had been avail­ab­le to an elite clientele IN her excl­us­ive Paris bout­ique, but to market the perfume profession­ally, Coco needed someone with wide experien­ce in comm­erce, international business connections and ac­c­ess to large amounts of capital. In 1924 Pierre and Paul Wert­h­eimer became Coco's busin­ess partners in the House of Ch­an­el.

Would the perfume business have survived, had Chanel been alone? NO! For a 70% share of the company, the Wer­t­h­­eim­ers provided ALL financing for production, mar­keting and dist­rib­ut­ion of Chanel #5. Théophile Bader, who was selling Chanel #5 to the public in his Galeries Lafay­ette, was given a 20% share. Chanel herself received the other 10% of the stock, licen­s­ed her name to Parfums Chanel.

Chanel needed people who could help her career, including Ch­ris­t­ian Dior, Elsa Shiap­ar­elli, Yves Saint Laur­ent. But Chanel never mar­r­ied! In 1925, Hugh Grosvenor, 2nd Duke West­minster met Chan­el in Monte Carlo and purch­ased a London home for her in pres­t­ig­ious Mayfair dist­rict. In 1927 he gave her a parcel of land on French Riv­iera, to build her villa. This pro-German, anti-Semitic British Duke liai­son with Chanel lasted for 10 years, the same time Chan­el's friendship with Winston Ch­urchill also blos­­s­om­ed.

Chanel’s lover from 1930 until his death was des­ign­er- illustrator Paul Iribe (1883–1935). His art showed aggres­sive pat­riotism, fuelling anti-Semitism and fear of foreigners.

The Duke & Duchess of Windsor mar­ried in June 1937, combining their dislike of Jews, trade unions, soc­ial­ism, Freemasons & communism. The royal couple sett­led in Paris amid a gl­am­or­ous social set of designers, Nazi sympathisers, Am­er­ican heir­­es­ses, British ex-pats and idle rich. Including Coco Chanel!

WW2 brought the Nazi seizure of Jewish owned property and businesses, and antic­ip­­at­ing Nazi mand­ates against Jews, the Wert­heimers quickly protected their company. While still in France the brothers leg­ally turned control of Parfums Chanel over to a Christ­ian, French industrialist Felix Amiot. As Germany was invading France, the brothers fled to New York, where Estée Lauder (1908-2004) helped set them up.

From NY the brothers sent an American emissary, H Gregory Thomas, back to France with a mission: to get the formula for #5 and the main ingredients (jasmine oils) from Grasse. Thomas also helped Pierre's son Jacques escape to US.

Chanel had never been satisfied with the ownership contract so in May 1941, as the Occup­at­ion took half of France, she used her Vichy connections to try to force the brothers out of the con­tract. Calling the company abandoned, Chanel argued that company Les Par­fums Chanel had been Jewish prop­erty that should be confis­cated & redis­tributed solely back to her, an Aryan. Felix Amiot ensured she failed!

After middle-aged Coco Chanel closed her Paris fashion business, she con­tinued to live across the street at the plush Hotel Ritz, Nazi head­quarters in Paris. She soon began a romance with a young, athletic of­ficer named Hans Gunther von Dincklage, a Nazi propaganda officer

Coco Chanel and Gen Walter Schellenberg, chief of the Abwehr 
warhistoryonline

Chanel was also very close to Nazi Gen Walter Schel­l­en­berg, chief of SS intelligence. Clearly Chanel collabor­ated with this Abwehr ag­ent, hon­oured by Hitler & Goeb­b­els, and was herself recruited as an agent in­to Abwehr. It paid off! Chanel kept a car, driver and petrol all war: no one but a Vichy Min­ister had that!

Note that on several occasions, Félix Amiot was summoned by the Ges­tapo. But in Sept 1944, when Chanel was questioned by the Free French Purge Comm­it­tee, they had no documented evid­ence of her Ger­man collab­or­ation and had to release her. Per­haps Wins­ton Church­­ill inter­v­ened with the French government, via Viscount Duff Cooper, Brit­ish ambassador to the French provision­al government.

Coco esc­aped quietly to Switzer­land, and Felix Amiot turned Parfums Chanel back to the Werth­eimers.

So in the early 1950s, Pierre Wert­heim­er visited Chanel at the Beau Rivage hotel in Laus­anne and they came to a mutual agreement. Pierre gave her $9 million for her percentage of the perfume sales during the war. The tens of millions that she made later, thanks to this perfume, made her one of the richest women in the world. Her fut­ure share would be 2% of all perfume sales world­wide. Pier­re Wertheimer took full control of Chanel in 1954, paying for the remaining 20% from Théophile Bader’s fam­ily. Returning to Paris in 1954, Coco was back in Rue Cam­bon.

At 87 Chanel was busy working but died in Jan 1971 and was buried in the Bois-de-Vaux Cemetery, Lausanne. When she died without family, who inh­erited the business? In the ultimate irony, her old perfume company part­ners, Pierre & Paul Wertheimer, did. When they died, the company was passed down to Pierre’s son Jacques Wertheimer, and then to Jacques’ sons, Alain & Gerald Wert­heimer. In 1983 German fashion designer Karl Lag­er­feld (1933-2019) became, and remained Chanel’s creat­ive dir­ect­or.

Wartime Sites in Paris: 1939-1945 by Steven Lehrer is excellent for Wertheimer family history.







32 comments:

Andrew said...

That was complex but a read worthy of concentration and focus. The Windsors were not really very nice people, were they. Maybe it was a good thing that he was a short term king.

Joe said...

Mostly we know about successful people, but I have never heard of Felix Amiot. Brave and very lucky.

jabblog said...

Very interesting to learn of the other side to Coco Chanel - what an unpleasant person.

Hels said...

Andrew

The Duke & Duchess of Windsor were shockers :( As king he was forbidden to marry a multiple divorcee to he voluntarily gave up the throne to mar­ry the American in June 1937. But much worse than that, they were both pro-Hitler, anti-workers and anti-Semitic, so they were forced to live outside Britain. Living in Paris with Nazi sympathisers and Am­er­ican heir­­es­ses might have suited the Duke and Duchess, but it was humiliating for ordinary British families who were struggling and suffering.

Hels said...

Joe

He was a hero, yes. After Germany invaded France in 1941, Chanel petitioned the Vichy government and Nazi officials for sole ownership of her perfume company. But the Wertheimer brothers, ? knowing about Chanel’s committed plan to take control of her perfume business, and the anti-Jewish laws that operated in Germany, had ensured that would never happen. But here is the ironic part; before the war the Wertheimers had given full control of their share to a French Christian industrialist named Felix Amiot who had willingly sold arms to the Nazis! Their choice of Amiot as their Aryan proxy worked out!

Hels said...

jabblog

I felt sorry for Coco Chanel because she was dumped into an orphanage as a toddler and probably never saw her family again. And I also think she was amazingly talented with designs that made women look excellent. But her moral values, and her lovers, depended on who could help her more - Jews, Christians, Nazis, Germans, French or British PMs.

Handmade in Israel said...

Very interesting. Do you know WHY Chanel's old perfume company part­ners inherited her company? She left no will?

Parnassus said...

Hello Hels, I never heard much nice about Chanel and her crowd, and now with your post my opinion is even lower. (Saying she was talented is the same as saying that Wagner and Dickens were talented.) I don't know enough about business history to evaluate the 10% deal, but I do know that many have become very rich on seemingly small royalties or percentages.
--Jim

hels said...

Handmade
70% of the company belonged to the Wertheimer brothers' because they funded all the manufacture, distribution and selling of the products from the mid 1920s on.

Although Chanel got naming rights, she never owned more than 10% of the stock. As much as I loved her designs, she tried to be a ruthless thief.

hels said...

Parnassus
People will do whatever they have do to stay alive and to prosper.

The Wertheimers were already in the U.S! So Channel saw her chance to tell the Vichy court that the Wertheimers had deserted and therefore the old contract was void. Luckily she failed.

Jo-Anne's Ramblings said...

Some of this I knew I have never tried the perfume either

roentare said...

Such a fascinating story and history. I will tell mum about it as she likes the company.

My name is Erika. said...

That is quite the story about Coco Chanel. And it's interesting how what went around, came back after Chanel died.

River said...

I remember some of those labels though I have never bought them. I'm not a make-up user, sticking with moisturiser (nivea) and sunscreen. I did buy some perfume several years ago, a Christmas gift for a grand daughter and got a bottle for myself at the same time, I still have it though it has only one or two squirts left.

Hels said...

River

I don't blame you for not putting mucky stuff on your face. Nor will I ever forgive Chanel for her immoral behaviour against the very family who totally supported her

But we still have to acknowledge that Coco Chanel's products were VERY popular, satisfyingly simple and rather expensive. Even today, Chanel No. 5 is a classic, probably the most exclusive perfume in the world.

Hels said...

Erika

Coco Chanel lived longer than both Pierre and Paul Wertheimer, and might have expected to take the brothers' large shares in the company after they had both died (in 1948 and 1965). But when she died in 1971 _without any spouse or children_, her solicitors knew from all her legal papers that her old perfume part­ners had to pass the company down to Pierre’s son Jacques Wertheimer (and then the grandchildren).

Despite the fact that Pierre gave her $9 million for her percentage of the perfume sales during WW2, she still bitterly resented both Wertheimer brothers.

Hels said...

roentare

From my mum I certainly knew about Coco Chanel's graceful life in the gorgeous Hotel Ritz Paris, Nazi head­quarters, during the horrors of WW2. And my mum knew Chanel soon lived with a Nazi of­ficer called Hans Gunther von Dincklage. This designer clearly enjoyed a wonderful war!

However your mum may or may not know about the critical role the Wertheimers played.

Hels said...

Jo-Anne

Do try the perfume at least once, to know how talented she was. Only then should you read

about Chanel's life, from miserable orphanage to world fame:
https://melbourneblogger.blogspot.com/2011/06/coco-chanel-from-neglected-orphan-to.html

and the glamorous Hotel Ritz under German control:
https://melbourneblogger.blogspot.com/2014/08/hotel-ritz-in-paris-german-occupation.html

Margaret D said...

Very interesting regarding Coco Chanel and only a small percentage of the company - shame she didn't marry or have children.

Katerinas Blog said...

I liked that I read things, which I had not read before. Very interesting information for me Coco Chanel was a fashion icon but... Thanks for the post. Have a nice day!

Hels said...

Margaret

I assume Chanel didn't have children of her own because her childhood in the orphanage was so horrible. Although apparently she did look after her nephew, following her sister's suicide. On the other hand, her so-called nephew might have been Coco's own child.

Nobody knew what to believe! More pain occurred when Coco's two sisters, Julia-Berthe and Antoinette, died tragically as young women. The details of the sisters' lives were never exposed publicly, thanks to Coco’s vigorous attempts to hide everything related to her family's past.

Hels said...

Katarina

Blogging is important! There are many famous people, extremely talented in their public specialist areas, who turned out to be immoral in their personal lives.

Charles Dickens is my normal example. A great writer and social activist, he treated his wife and mistress worse than dirt, privately and publicly. In Charles Dickens' biographies, he said Catherine was dull, ugly, fat and a wretched mother and housekeeper. After 20 years and 10 children, HE never allowed his wife to see her own children.

Rajani Rehana said...

Beautiful blog

Luiz Gomes said...

Boa tarde de quarta-feira minha querida amiga. Suas matérias são ricas e muito interessantes. Com bastante conteúdo e explicações.

MELODY JACOB said...

Thank you for sharing this fascinating history! It's amazing to see how the collaboration between Coco Chanel and the Wertheimer brothers shaped the perfume industry. I just shared a new post on my blog. Let me know your views about it. www.melodyjacob.com

DUTA said...

I like the perfume Chanel 5, but knew nothing of Coco's history.
In spite of having several lovers, she died without any family?! That's tragic.

Hels said...

Rajani

thank you for reading the post. Are you particularly interested in inter-war history?

Hels said...

Luiz

Welcome. I didn't realise how important the Wertheimer family had been in France and then the US.

I certainly did know a great deal about Coco Chanel's entire life, and used the references in her books to chase up the Wertheimers. The article in the Sydney Morning Herald was helpful, but even then, I needed much more information. See
"Chanel opens its books for the first time to reveal a $62b fortune"
by Elizabeth Paton, June 22, 2018
https://www.smh.com.au/business/companies/chanel-opens-its-books-for-the-first-time-to-reveal-a-62b-fortune-20180622-p4zn18.html

Hels said...

DUTA

family life had been pretty hideous for ALL her family. Mother Eugénie died of TB in 1895 and Coco's very young brothers were put to work on farms in primary school. Father Albert, unable to support his family, dumped his three daughters in an orphanage. When they were released, young sisters Antoinette and Julia-Berthe seemed to have tragically died (TB, suicide or pneumonia).

No wonder Coco never planned on having children of her own.

Hels said...

Melody

I think collaborations were always important, even though consumers and viewers may hear nothing about the important workers... other than the designer of course. The "stars" are unlikely to share the credit around, even to the people who funded all their success.

The coats are perfect because
1. we don't buy or wear heavy coats in Australia, even in winter. And
2. the flat design is flattering for most women. Noone wants to look like a round snowman.

Mandy said...

I had no idea Coco Chanel was trash. I'm so very pleased at how it all turned out, especially her company going to the Wertheimer family on her death. No 5 is my favourite perfume, followed by Worth's Je Reviens. I have old fashioned taste it seems

Hels said...

Mandy

Of course No 5 is still yours and many other women's favourite perfumes. And even now I can still see why her clothes were perfect for the times. So I have decided to focus on her great talents, rather than constantly being offended by her personal politics.

It is like not acknowledging Enid Blyton's major contribution to children's literature because she had less admirable qualities that were exposed much later.