Upmarket goods group Chanel began large-scale restructuring last year, according to copies of annual accounts cited by Reuters.

The accounts, which were reportedly filed at the commercial court of Nanterre on 19 July, showed the group announced an action plan after posting almost flat sales.

Sales at the privately-held company grew 0.9% to EUR923.80m (US$1.19bn), Reuters reported, which included sales of EUR671.96m outside of the French market.

Net profit in 2005 was EUR65.37m compared to EUR53.62m previously.

Growth within markets such as Russia and good jewellery and watch sales helped counteract a turnover decrease within the leather goods division, the report revealed.

Restructuring plans included taking on debt to construct new headquarters as well as share purchase in Coordination, Chanel Saint Honore and Chanel Europe for EUR156.9m, it was reported.