This is great news for all stock holders ...we now have 2 of the top retailers on the planet policing the cotton fiber in its products and Apdn hopefully is right in the middle of their defense. The dr mentioned a second retailer who came on board after I think Costco?? Is it Target?? This 7 years of bringing fraud to the minds of retailers is now here to stay. Target is refunding customers which I hope Wellspun is paying. That will be a huge deterrent and activator to make sure you have a solid solution thru ur supply chain or you could pay with 900 million in market cap loss.. Anyone know a company that can provide that??
(BN) Target Severs Ties With Welspun Over Egyptian-Cotton Disput
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Target Severs Ties With Welspun Over Egyptian-Cotton Dispute (1)
2016-08-19 15:22:09.340 GMT
By Shannon Pettypiece
(Bloomberg) -- Target Corp. is ending all business with
Welspun India Ltd., one of the world’s biggest textile
manufacturers, after saying the supplier was sending it phony
Egyptian cotton sheets.
The retailer said it discovered last month that 750,000
sheets and pillowcases labeled as Egyptian cotton were actually
made with another type of cotton. The retailer pulled the items
from its stores, and on Friday it began notifying customers that
it will give them a refund on the products, which were produced
between August 2014 and July 2016 and sold for as much as $75.
I Customers seeking a refund can visit Target’s help page on its
website.
Target is Mumbai-based Welspun’s second-biggest customer,
behind Bed Bath & Beyond Inc., according to Bloomberg data. The
company makes towels, sheets, rugs and carpets for 18 of the top
30 global retailers. Its other major clients include Wal-Mart
Stores Inc., J.C. Penney Co. and Macy’s Inc. It also
manufactures the towels for the Wimbledon tennis championships
and the Rugby World Cup.
“We have informed Welspun that, due to this conduct, we are
in the process of terminating our relationship with them,” said
Molly Snyder, a Target spokeswoman. “We value the trust that our
guests place in us. The Target team will continue to work
closely with all vendors to help ensure that the products we
offer to our guests meet or exceed their expectations.”
Spokesmen for Welspun couldn’t be reached after regular
business hours in India.
Phasing Out
Target said it is phasing out all of its products from
Welspun, which it has used as a supplier for more than a decade,
though 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.
Egyptian cotton, which has a longer fiber that creates a
softer thread than other cotton, often carries a higher price
because shoppers consider it to be higher quality.
Welspun India is part of Welspun Group, a conglomerate
which also owns Welspun Corp. Ltd., a pipe manufacturer that
also supplies major oil and gas companies.
Welspun India’s sales in the year through March rose 13
percent to 59.8 billion rupees ($891.6 million), and net income
climbed 30 percent to 7.03 billion rupees.
