Wal-Mart to Stop Selling Egyptian Cotton Sheets Made by Welspun

Wal-Mart Stores Inc. said it will stop selling Egyptian cotton sheets made by Welspun India Ltd. after it said an investigation found the Indian textile giant couldn't guarantee the products were legitimate.

"Welspun has not been able to assure us the products are 100% Egyptian cotton, which is unacceptable," a Wal-Mart spokeswoman said Friday.

The world's biggest retailer is removing the Welspun products from U.S. store shelves and Walmart.com. Wal-Mart said it will offer customers that purchased the products a full refund.

Wal-Mart isn't cutting ties with Welspun, said the spokeswoman, instead the retailer is working with the company to "implement strong controls and better label the products they supply to us."

Welspun didn't immediately respond to a request for comment.

Last month Target Corp. said it was pulling thousands of "Egyptian cotton" sheets made by Welspun from its shelves and cutting ties with the company after the retailer said it found Welspun had used non-Egyptian cotton for about two years.

That news spurred other Welspun customers, including Wal-Mart, J.C. Penny Co. and Bed Bath & Beyond Inc. to also investigate.

Write to Sarah Nassauer at [e-mail]

(END) Dow Jones Newswires

September 09, 2016 14:45 ET (18:45 GMT)

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