Wal-Mart Probes Whether India Company Misrepresented Cotton Sheets
August 23 2016 - 4:30AM
Dow Jones News
NEW DELHI—Wal-Mart Stores Inc. said Tuesday that it is reviewing
supplies from Welspun India Ltd., days after Target Corp. severed
ties with the Indian textile maker alleging that the company billed
sheets it sold as made with Egyptian cotton when they weren't.
Wal-Mart said it is investigating whether Welspun sold it
cheaper cotton sheets while passing them off as superior
products.
"We are currently reviewing Welspun cotton certification records
and plan to have additional conversations with Welspun," the U.S.
retailer said. "If we discover an issue, we will handle it
appropriately," the company added, without elaborating.
Welspun didn't immediately respond to a request for comment.
Trading in the company was suspended on Tuesday after the stock
fell 20%, the daily limit, for a second-straight day.
Welspun said Saturday that it had engaged an accounting firm to
review its supply chain after Target made the allegations.
American retailers such as Target, Wal-Mart, Bed Bath &
Beyond Inc., J.C. Penney Co. and Macy's Inc., accounted for
two-thirds of Welspun's $878 million in sales in the year ended
March 31. Welspun is one of Asia's biggest textile
manufacturers.
(END) Dow Jones Newswires
August 23, 2016 04:15 ET (08:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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