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25 August 2016

earth-shattering cotton bedsheet & towel scandal revealed!

Click to examine thread count.



Reuters
 
Welspun faces new probe from Bed Bath, shares pressured
 
By Nandita Bose and Douglas Busvine | CHICAGO/NEW DELHI

U.S. retailer Bed Bath & Beyond (BBBY.O) said it ordered an external audit of textiles from Welspun India (WLSP.NS), putting more pressure on the embattled Indian bedding and towel maker that has seen nearly half its market value wiped out this week.
Welspun has been caught in a maelstrom after U.S. retailing giant Target (TGT.N) last week accused the Indian manufacturer of passing off cheap sheets as premium Egyptian cotton for two years.

Target has said it is severing ties with the company, prompting other Welspun clients including Wal-Mart Stores (WMT.N) and JC Penney (JCP.N) to also probe the manufacturer. 

Welspun shares fell 10 percent at the open on Thursday, and hit the daily lower limit for a fourth day. At Thursday's low, Welspun had a market value of 53.55 billion rupees ($798 million), nearly half the market value it had last Friday.

The stock recovered to trade largely flat by midday on Thursday after Welspun sent a clarification to exchanges reiterating that an external audit of the supply chain has been sought and would be completed in 6-8 weeks. 

BED BATH PROBE
Bed Bath & Beyond spokeswoman Leah Drill said the retailer will pursue an investigation and take appropriate action.

The company's announcement came after Wal-Mart, the world's largest retailer, said it is reviewing Welspun's cotton certification records. Department store JC Penney is also conducting an investigation "to ensure the integrity of Welspun's product claims." Macy's (M.N) said on Wednesday it is also monitoring the situation.

Target on Wednesday said it is in the process of taking out all products made by Welspun under the 'Fieldcrest' label, and has already removed 750,000 Fieldcrest bedding products from stores and its website. Those were sold between 2014 and 2016, and Welspun claimed they were made from Egyptian cotton, spokeswoman Molly Snyder said.

Target is offering a refund, in the form of a gift card, to affected customers, who either have a loyalty card or bought the products online.

On Monday, Welspun said it would hire a major accounting firm to review its supply processes.

Some retailers such as Swedish home furnishing giant IKEA AB [IKEA.UL] said they would continue doing business with Welspun while awaiting the outcome of the firm's probe.

(Reporting by Nandita Bose in Chicago and Douglas Busvine in New Delhi, with additional reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Alan Crosby and Ian Geoghegan)
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2 comments:

Selina Dorsey said...

Honeymoon Cotton Bed Sheet Set from Bizarkdeal

I like it so much,100% cotton,extremely warm,soft,breathable,and safe to sensitive skin.I also like its color,light blue,looks quite warm and sweet.I will recommended to my friends.

Vleeptron Dude said...

Hi Selina

Thanks for posting your Comment on this extremely important international story.

Farmington Connecticut USA? Or another Farmington?

How can you defend Bed Bath & Beyond selling less thread-count Indian bedsheets as Egyptian cotton?

Our cats prefer to sleep on our winter flannel bedsheets. Sometimes they allow us to sleep on the bed, too.

I was horrified to read about this bedsheet and towel ripoff. Someone should go to prison.