Jonathan, you're right they did some awful stuff in that period as well as some nice copies of earlier designs. This is definitely pretty bad, but quite similar to a suit that's been auctioned off and on for many months.
Back to the label. The only labels I remember from this period in rtw were the Chanel Creations. They died about the time Karl arrived.
I looked at the label again. At the lower right corner and upper left corner, the turned under ends show. This is sloppy workmanship; and I think even during this period at Chanel they would have been more careful. C