Chloé has been one of the industry's recent success stories, its sales more than doubling in 2005, fueled by Philo's knack for creating coveted handbags, footwear and clothing. For Richemont's 2006-07 fiscal year, Chloé was cited as a star performer, with sales rising more than 50 percent due to an expanded retail network.

Last year, Richemont executives announced plans to expand Chloé into watches and jewelry to capitalize on its strong brand recognition. Founded in 1953 by Gaby Aghion and Jacques Lenoir, Chloé was credited with inventing the category of luxury ready-to-wear and making youthful femininity the brand's byword. Aghion worked with a rotating team of designers, some of them unknown, tapping Karl Lagerfeld as head designer in 1965.

Stella McCartney took up the reins in 1997, and was succeeded by Philo four years later when McCartney resigned to set up her own fashion house in a joint venture with Gucci Group. Chloé relied on its in-house design team while it conducted a worldwide search for Philo's successor.

According to sources, MacGibbon declined when asked to be considered for the top job at Chloé in 2006, when Philo resigned to spend more time with her family and her new baby, Maya. Philo gave birth to a son in June. MacGibbon — like Philo, a graduate of London fashion school Central Saint Martins — worked as an assistant director to retired Roman couturier Valentino Garavani before joining Chloé.