It further said JCPenney suppliers of private and exclusive brand products are required to certify the quality compliance of any raw materials used and when sourcing Egyptian cotton, manufacturers must provide a certificate issued by the Cotton Egyptian Association as an additional measure of authenticity.
You might be sleeping on bed sheets that aren't as fancy as you think.
Cotton grown and sourced from Egypt is believed to be softer and more durable than other varieties and is sold by companies seeking to charge a premium on home-furnishing products. This is an issue of highest priority for us and we will take all necessary steps to address it.
Target is one of Welspun's biggest customers, accounting for $90 million in sales in the last fiscal year, according to Bloomberg. U.S. retail giant has terminated the business ties with Welspun Inda aver supply of low quality cotton for its sheets and pillowcases other than Egyptian cotton. It said in a conference call that the product in question with Target is about 1 percent of the textile company's overall sales and about 10 percent its business with Target.
They retail for as much as US$175 a set. "Welspun has reaffirmed to us that the Welspun product carried in our stores is Egyptian cotton". This makes its long-term goal quite a challenge to achieve.
Welspun, the maker of bedding, towels, rugs and carpets, is now caught up in a spin-cycle of negative publicity.
This could compound the woes of Welspun, which supplies to several large USA retailers and has seen its shares plummet almost 43 per cent since Target's announcement on Friday. (M - Analyst Report), according to Bloomberg. The 36 per cent two-day slide-the steepest since 1999 - cut the company's market value to 66.2 billion rupees (US$990 million). The company claims to have made "every fifth towel" that is marketed and sold in America. It manufactures one out of every five towels sold in the USA and sells to major customers like J.C. Penney (JCP - Analyst Report) and Macy's, Inc. One year on, 3 sectors that bounced back over 30%.
"We are actively engaged with our customers".