Ultimately, the Wertheimers and Chanel came to a mutual accommodation, re-negotiating the original 1924 contract. On May 17, 1947, Chanel received wartime profits from the sale of Chanel No. 5, in an amount equivalent to some nine million dollars in twenty-first century valuation. Further, her future share would be two percent of all Chanel No. 5 sales worldwide. The financial benefit to her would be enormous. Her earnings would be in the vicinity of twenty-five million dollars a year, making her at the time one of the richest women in the world. In addition, Pierre Wertheimer agreed to an unusual stipulation proposed by Chanel herself. Wertheimer agreed to pay all of Chanel’s living expenses— from the trivial to the large— for the rest of her life.

　　Protection from prosecution

　　In September 1944, Chanel was called in to be interrogated by the Free French Purge Committee, the épuration. The committee, which had no documented evidence of her collaboration activity, was obliged to release her. According to Chanel’s grand-niece, Gabrielle Palasse Labrunie, when Chanel returned home she said, “Churchill had me freed”.

　　The extent of Winston Churchill’s intervention can only be speculated upon. However, Chanel’s escape from prosecution certainly speaks of layers of conspiracy, protection at the highest levels. It was feared that if Chanel were ever made to testify at trial, the pro-Nazi sympathies and activities of top-level British officials, members of the society elite and those of the royal family itself would be exposed. It is believed that Churchill instructed Duff Cooper, British ambassador to the French provisional government, to “protect Chanel”.

　　Finally induced to appear in Paris before investigators in 1949, Chanel left her retreat in Switzerland to confront testimony given against her at the war crime trial of Baron Louis de Vaufreland, a French traitor and highly placed German intelligence agent. Chanel denied all accusations brought against her. She offered the presiding judge, Leclercq, a character reference: “I could arrange for a declaration to come from Mr. Duff Cooper.”

　　Haute couture Chanel suit circa 1960

　　Post-war life and career

　　In 1945, she moved to Switzerland, eventually returning to Paris in 1954, the same year she returned to the fashion world. The re-establishment of her couture house in 1954 was fully financed by Chanel’s old nemesis in the perfume battle, Pierre Wertheimer. Her new collection was not received well by Parisians whose memory of Chanel's treasonous collaboration with the Nazis still resonated in the public mind. However, her return to couture was applauded by the British and Americans, who became her faithful customers.

　　Death

　　In early 1971 Chanel, then 87-years old, was tired and ailing but continued to adhere to her usual schedule, overseeing the preparation of the spring collection. She died on Sunday, January, 10th at the Hotel Ritz where she had resided for more than thirty years. She had gone for a long drive that afternoon and, not feeling well, had retired early to bed.

　　Legacy as design revolutionary

　　As early as 1915, Harper's Bazaar raved over Chanel’s designs: “The woman who hasn’t at least one Chanel is hopelessly out of fashion…This season the name Chanel is on the lips of every buyer.” Chanel’s ascendancy as a fashion avatar was the official deathblow to the corseted female silhouette. The frills, fuss, and constraints endured by earlier generations of women were now passé. Her genius redefined the fashionable woman for the post WW I era. The Chanel trademark was a look of youthful ease, a liberated physicality, and unencumbered sportive confidence.

　　The horse culture and penchant for hunting so passionately pursued by the elites, especially the British, fired Chanel’s imagination. Her own enthusiastic indulgence in the sporting life led to clothing designs informed by those activities. From her excursions on water with the yachting world, she appropriated the clothing associated with nautical pursuits: the horizontal striped shirt, bell bottom pants, crewneck sweaters, and espadrille shoes—all traditionally worn by sailors and fishermen.

　　Ethnic influence

　　Designers such as Paul Poiret and Fortuny introduced ethnic references into haute couture in the 1900s and early 1910s. Chanel continued this trend with Slav-inspired designs in the early 1920s. The beading and embroidery on her garments at this time was exclusively executed by Kitmir, an embroidery house founded by an exiled Russian aristocrat, the Grand Duchess Maria Pavlovna, the sister of her erstwhile lover, Grand Duke Dmitri Pavlovich. Kitmir's fusion of oriental stitching with stylised folk motifs was highlighted in Chanel's early collections. One 1922 evening dress came with a matching embroidered 'babushka' headscarf. In addition to the eadscarf, Chanel clothing from this period featured square-necked tunic tops and elbow length sleeves alluding to Russian peasant attire, with chenille cloche hats for day wear. Evening designs were often embroidered with sparkling crystal and black jet embroidery.