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Target Supplier Welspun Opens Probe Into Cheap-Sheets Allegation

  • Sheets made from other cotton sold as Egyptian for two years
  • Mumbai firm loses contract with its second largest customer

Welspun India Ltd. will appoint an external auditor to investigate after Target Corp. severed ties with the textile manufacturer, which the retailer said had passed off cheaper cotton sheets as premium Egyptian cotton for two years.

Target said on Friday it discovered last month that some 750,000 sheets and pillowcases from Welspun had been mislabeled as Egyptian cotton. Target pulled the items, sold under the Fieldcrest label, from its stores and has offered customers refunds on the products, which were made between August 2014 and July 2016.