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Chanel Invests in Four French Silk Suppliers

The iconic luxury label has bought four of its long-standing silk suppliers, located in the Loire region of France, three of which carry the Entreprise du Patrimoine Vivant (Living Heritage Company) label awarded by the government in recognition of highly skilled work.

The move marks the French company’s third supply-chain deal in fourth months, Reuters said.

“Through these investments, Chanel is reaffirming its commitment to the long-term sustainability of a high-quality segment and to ensuring the longevity of the silk weaving industry in France,” Bruno Pavlovsky, president of Chanel Fashion, told Reuters. He also revealed plans to invest in the four units to upgrade their equipment and boost their capacity.

Earlier this month, Chanel announced its acquisition of Richard Tannery, a family-run lambskin supplier located in the Millau region of southern France. Back in April, the company acquired a minority stake in the parent company of Sophie Hallette, a 129-year-old lacemaker near Calais.

Chanel, founded by Coco Chanel in 1909, is the world’s second largest luxury brand and reported a 38 percent increase in annual profits in 2015. American-born Maureen Chiquet stepped down as global chief executive in January, a role she held since 2007. French businessman and Chanel co-owner Alan Wertheimer has since taken over the operational management of the company.