Following an ongoing legal battle, the luxury label has been ordered to pay 200,000 Euros ($258,400) to World Tricot, one of Chanel's former suppliers, WWD reports.
World Tricot sued Chanel in 2009 for breach of contract in reference to wrongful termination as well as counterfeiting. They accused the brand of copying a white crochet pattern. Chanel denied all charges and World Tricot was ordered to pay Chanel 200,000 Euros for "public disparagement."
But for some reason, the Paris Court of Appeal reversed the decision on Friday, ordering Chanel to pay the amount for counterfeiting. According to Vogue UK, Chanel will decide "shortly" whether or not they will appeal the decision.
"This is the first time that we have faced this type of situation, although we work with close to 400 suppliers," Bruno Pavlovsky, president of Chanel fashion, said in a statement to both WWD and Vogue UK. "This very specific case is in no way reflection of the quality of our relations with our suppliers."
WWD also points out that suppliers and manufacturers in Paris, such as World Tricot, have been facing hard times as brands outsource more and more of their production abroad.