June 5 (Reuters) - Chanel artistic director Virginie

Viard is leaving the label, the luxury brand said on Thursday,

kicking off a flurry of speculation over who will replace her in

one of the fashion industry's highest profile positions.

"A new chapter is opening for Chanel Mode," Chanel said in a

statement, confirming the change, which was first reported on

fashion news website Business of Fashion.

The privately-owned label, known for tweed suits, quilted

handbags and No. 5 perfume, said a "new creative organization"

would be announced in due course and thanked Viard for her "rich

collaboration of five years".

Viard, 62, worked at Chanel for nearly thirty years,

alongside Karl Lagerfeld, whose role she took over in 2019

following his death.

Her departure comes as the industry adjusts to slower growth

and several other labels, including Kering-owned

Gucci, seek new creative direction to reignite sales.

The post-COVID pandemic boom, fuelled by pent-up demand for

fashion, has tapered off as shoppers spend less due to the

rising cost of living.

Chanel teams will ensure the "continuity" of collections in

the interim period, and the brand will host its fall-winter

haute couture show 2024/2025 on June 25 in Paris, it said.

Chanel Chief Executive Leena Nair had brushed off talk of a

designer change last month, noting that Viard had overseen

strong growth in ready-to-wear fashion sales, which have surged

two-and-a-half-times since 2018.

The world's second-largest label after LVMH-owned

Louis Vuitton, Chanel is owned by French billionaire brothers

Alain Wertheimer and Gerard Wertheimer.