Karl decided to drop Lily as the face of of Chanel Handbags because of her hard partying lifestyle.
Lily's contract expired last year and Lagerfeld didn't renew it. He decided to sign Johnny Depp's lady love, Vanessa Paradis.
A Chanel spokesperson said: "Lily was the face, but now it is Vanessa."
Lily and Karl used to be very close. They often partied together, but Karl must really be over Lily since he didn't even invite her to his party during the Cannes Film Festival.
Lily and Karl used to be very close. They often partied together, but Karl must really be over Lily since he didn't even invite her to his party during the Cannes Film Festival.
A source said: "Karl had a show and a party, but Lily was not invited. It was Karl's way of making it clear she is no longer a part of the Chanel family. He instructed his people not to invite her.