Burberry canceled a deal with supermodel Kate Moss and Chanel decided not to renew her contract Wednesday, as police said they were investigating allegations that she recently used cocaine.

Confirmation of the investigation came a day after Hennes & Mauritz, Europe's largest fashion retailer, canceled plans to use the 31-year-old model in an upcoming ad campaign.

Moss has made no public comment. No one answered the phone Wednesday evening at the Storm modeling agency (search) in London, which represents her.

Chanel, the French fashion house, said Wednesday it wouldn't renew Moss' contract when it expires next month.

Julie Le Blevec, spokeswoman for Chanel perfumes, said the decision wasn't based on media reports.

Moss has been the face of Chanel's Coco Mademoiselle (search) perfume since 2002. Le Blevec said the company would continue using ads that feature her until the contract expires.

Burberry said it had been in talks with Moss' representatives and that they had "mutually agreed that it is inappropriate to go ahead" with the project this autumn.

"Kate has always been a fantastic model and highly professional for Burberry," the company said. "We are saddened by her current circumstances and hope she overcomes her problems as soon as possible. We wish Kate all the best."

The decision by H&M (search) Tuesday to drop its campaign came after Moss acknowledged last week that British tabloid reports of her recent cocaine use were true.

London's police generally investigate drug dealers rather than users, but that policy is "adaptable to the impact of events," said Ian Blair, commissioner of the Metropolitan Police.

Blair told reporters he wouldn't comment directly, but added: "We have to look at the impact of this kind of behavior on impressionable young people and if there is evidence, something should be done about it.

"I can remember being asked a question about a previous individual who was given a caution. I think that was a wrong decision."