Walmart stops sale of Egyptian cotton sheets manufactured by Welspun after authenticity concerns
The Indian textiles manufacturer has faced immense scrutiny after Target Corp cancelled its contract with them last month.
United States-based retailer Walmart on Friday said it had stopped the sale of Egyptian cotton sheets manufactured by textiles company Welspun India Ltd after concerns that the cloth used was not authentic, Reuters reported. “Welspun has not been able to assure us the products are 100% Egyptian cotton, which is unacceptable,” the retail giant said in a statement.
However, the statement added that Walmart will not cut ties with Welspun India, but will instead work with the manufacturer to ensure the better labelling of products, as well as stronger quality control. Walmart will also offer customers who purchased Welspun goods a full refund.
Welspun India has faced immense scrutiny by its partners after Target Corp cancelled its contract with them last month. Target said it found out in July that the Indian company substituted Egyptian cotton in about 7.5 lakh bedsheets and pillow covers with non-Egyptian ones. Its market value saw a near 50% drop following the accusation and other retailers, including Walmart and Bed, Bath & Beyond, ordering investigations and external audits of Welspun products.
Touted as one of the biggest textile manufacturers in the world, Welspun India had at one point made products like towels, carpets, bedsheets and rugs for 18 of the top 30 retailers in the world, including JC Penney and Macy’s Inc.