Costco Stops Selling Baby Clothes From Chinese Firm

By Allison Prang

Costco Wholesale Corp. (COST) has stopped selling children's sleepers from a company that is one of five firms with a withhold release order from U.S. Customs and Border Protection because of how the company's products are made.

Last week, U.S. CBP said it issued five orders Sept. 30 "based on information obtained and reviewed by CBP that indicates that the products are produced, in whole or in part, using forced labor."

One of those orders was on clothing made by Xinjiang, China's, Hetian Taida Apparel Co. According to the Associated Press, Costco Wholesale Corp. (COST) started importing Hetian Taida's baby pajamas in September.

Costco said in a statement Wednesday it has suspended the sales of those sleepers "pending further investigation and developments."

"The sleepers that had been on sale at Costco until very recently were sourced from factories outside the Xinjiang region and without connection to the entity that was recently named as the subject of a detention order by the Customs and Border Patrol," the company said.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

October 09, 2019 16:11 ET (20:11 GMT)

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