PARIS — Chanel acknowledged Monday that it is the subject of an investigation by Turkish Customs authorities, and that it is cooperating fully.

This story first appeared in the March 11, 2014 issue of WWD. Subscribe Today.

However, the French fashion house stressed it has yet to be officially notified of any wrongdoing under Turkish law, and it took sharp exception to “a number of accusations in the media, which we refute.”

Daily newspaper Hürriyet was among Turkish media to report on the Customs probe.

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Chanel noted that it conducted an internal audit in 2012 that revealed “major irregularities and failings” in the local management of its two boutiques in Turkey.

“Those irregularities led us to terminate the employment of the manager of our boutiques at the time for noncompliance with our internal policy and business rules,” Chanel said. “This situation is absolutely exceptional, and since then we have further tightened our controls.”

The privately held firm added that it “takes the utmost care to comply with the regulations in the countries where we are present, and we remain ready to assist the authorities and the legal system in bringing the facts of this case to light and taking all necessary action.”

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