NEW YORK (AP) — U.S. retailers like J.C. Penney and Wal-Mart are scrutinizing whether sheets Welspun India Ltd. said were Egyptian cotton are actually knock-offs, sending its shares plummeting.
Target had said Friday it was pulling the sheets from its stores and online and terminating its relationship with Welspun. It said an investigation confirmed that Welspun had used another type of Egyptian cotton for two years. Since then, retailers including J.C. Penney, Bed Bath & Beyond and Wal-Mart have said they are investigating the company's certification claims.
Welspun told investors this week it's conducting an audit. It shares have fallen more than 40 percent since Friday on the BSE, the largest exchange in India, and were down 8 percent Thursday.