The seaside town is now riddled with neon signs, but the famous Chanel frontman plans to use detailed retro sets to recreate the magic from the beginning of the Chanel empire.
Lagerfeld has cast his favourite models including Stella Tennant and Brad Kroenig in the movie.
The Chanel designer made headlines earlier this week for another of his talents. It was announced that Brazilian jelly shoe giant Melissa will feature the designer on the cover of its in-house magazine Plastic Dreams. Lagerfeld appears alongside model-of-the-moment Cara Delevingne in the ninth issue of the publication.
Lagerfeld also photographed a 16-page fashion feature inside the magazine, which was shot in his studio in Paris. Delevingne is seen modelling styles from the first capsule collection by Lagerfeld, which feature the colours of the Brazilian flag.