Over the festive period it was revealed that Chanel was another victim of the credit crunch. Reports suggested that they would have to let some staff go.
This week Karl Lagerfeld has spoken to the IHT about the effect of the economy on Chanel. He said, "We have no budget. We do what we want and throwing money out the window brings money back in through the front door. The bottom line is I don't deal with the bottom line. The luxury in my life is I never have to think about it."
Despite this, Karl suggests that the economy has affected him creatively. He declares, "Bling is over. Red-carpety-covered-with-rhinestones is out. I call it 'the new modesty'." I can't wait to see how this is interpreted on the catwalk for the Autumn collection.