French luxury fashion house Chanel has been accused of counterfeiting and "abusive termination of (ongoing) contractual relations" by one of its suppliers. World Tricot seeks £1.3 million in damages for breach of contract and £2.3 million for counterfeiting.

The supplier, which also supplies knitwear to Dior, Christian Lacroix, Jean Paul Gaultier, Givenchy and Kenzo, alleges that Chanel produced a tricot vest that World Tricot had proposed to the fashion house and which it had subsequently rejected. Chanel has denied the allegation and has turned around and sued World Tricot for £340,000 for moral prejudice and tarnishing its image.

The French judge, unable to resolve the complex case, has proposed that the parties resolve their differences with the help of a mediator. The companies have until 20 January to agree to the proposition, or the case will not be tried again. "We are happy with the proposition, but it must happen very fast or else World Tricot will not survive," said Solange Doumic, attorney for World Tricot.


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