Pursuits

Wal-Mart Drops Welspun Egyptian-Cotton Sheets After Review

  • Target previously pulled products, saying they were mislabeled
  • Controversy has hammered shares of textile giant Welspun

Customer vehicles sit parked in a lot outside a Wal-Mart Stores, Inc. retail location in Louisville, Kentucky, U.S. on Friday, May 15, 2015. Wal-Mart is expected to release quarterly earnings on Tuesday, May 19. Photographer : Luke Sharrett / Bloomberg

Photographer: Luke Sharrett/Bloomberg
Lock
This article is for subscribers only.

Wal-Mart Stores Inc. will stop selling Welspun India Ltd.’s Egyptian-cotton sheets over concerns about the products’ provenance, dealing a fresh blow to a supplier embroiled in controversy.

Wal-Mart took the step after a review of Welspun’s cotton sheets, a move spurred by rival Target Corp. cutting ties with the Indian vendor. Unlike Target, Wal-Mart said it won’t end all business with Welspun, which is putting stronger quality controls in place and adopting new labeling practices.