Chanel has chosen the UK as its base of global operations and will be setting up its first global office in London.
Head designer Karl Lagerfeld and his team will be staying in Paris.
A spokesperson for Chanel said: “[we] wanted to simplify the structure of the business and London is the most appropriate place to do that for an international company. London is the most central location for our markets, uses the English language and has strong corporate governance standards with its regulatory and legal requirements.”
Chanel reported global sales of over £7bn last year and employs more than 20,000 people worldwide.
Coco Chanel biographer and editor-in-chief of Harpers’ Bazaar, Justine Picardie, said: “spending on luxury goods by affluent London households [is] only second to Hong Kong, in terms of growth. Chanel leads the way. My strong intuition is that other (luxury brands) will follow.”
The news is sure to be welcomed by those in the fashion industry, amid uncertainty over Brexit and future trading agreements. The UK fashion industry is currently one of the fastest growing sectors of the economy, contributing over £32bn in 2017.