After accusing Welspun India of giving duplicate Egyptian cotton sheets, Target Corp has decided to terminate all business transactions with the supplier known as one of the world's biggest textile manufacturers. The retailer said it discovered last month that 750,000 sheets and pillowcases labeled Egyptian cotton were actually made with another type of cotton. The retailer immediately pulled out the items from its stores and started notifying customers that they will give them a refund on the products that were bought between August 2014 and July 2016 and sold for as much as $75.
Target has been the second-biggest customer of Mumbai-based Welspun's after Bed Bath & Beyond Inc, according to a Bloomberg data. The company makes towels, sheets, rugs and carpets for 18 of the top 30 global retailers. Its other major clients include Walmart Stores Inc, JC Penney Co and Macy's Inc. It also manufactures towels for the Wimbledon tennis championships and the Rugby World Cup.
Target has said that it was phasing out all its products from Welspun which it has used as a supplier for more than a decade. Termination of the process will take time since some merchandise has already been shipped or paid for. The withdrawal only includes two lines of Egyptian cotton bedding, and not all of its Egyptian cotton sheets are affected.
