Chanel Losses Its CEO

Change with unpredictable consequences in Chanel. After almost nine years as CEO, Maureen Chiquet announced her departure of the company with immediate effect (end of January). Its functions will be assumed by the current chairman of the firm, Alain Wertheimer, who has said in an internal memo to his employees that his appointment is not temporary. In any case, several sources cited by several international media say that the company will shortly begin a searching process for a new CEO.

There is not much sense that Wertheimer will take over the day-to-day management of the firm, as he is part of one of the family owners of Chanel, ranking in the list of the richest people in France. Chiquet departure has been happened by the differences she had on the strategic direction of the group, in areas such as new business development. She has also weighed on the resignation issues on activities outside the company developed by the ex-CEO, which were disliked within the board.

There will now see the resilience of the company. Chiquet had a great recognition for its commitment to the international expansion of Chanel, which offered very good results. It also changed the company´s structure and made significant progress in the Chanel brand positioning as one of the most exclusive in the luxury world. Her last important step was the decision to match the prices of Chanel products in all countries to avoid the disadvantages of fluctuating exchange rates.

The latest annual results showed revenues of €6.9 billion with a net profit of €1.3 billion (according to Bloomberg data). In any case, the fact is that the creative direction of the company does not seem in danger, as it continues under the control of Karl Lagerfeld (in that position since 1983) which certainly allow the company takes over from Chiquet with due calm.

In the last year the fashion industry has experienced a real earthquake of changes in top positions of some of the leading firms in the sector. Balenciaga, Dior, Gucci, Donna Karan… have seen their top executives and creative directors have left their jobs for different reasons.

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