August 22, 2016

WELSPUNIND down 20% ... sad if true reason

Chart: you have to struggle to see where the price is today!


Reason?

Target Corporation in a statement issued on 19 August 2016 said that its vendor, Welspun Global Brands (Welspun), was one of the producers of Egyptian Cotton 500-thread count sheets under the Fieldcrest label for Target. After an extensive investigation, Target recently confirmed that Welspun substituted another type of non-Egyptian cotton when producing these sheets between August 2014 and July 2016 without Target having any knowledge of this substitution. These sheets were produced by a number of vendors and only Welspun was substituting product. Target said it was a clear violation of both Target's Code of Conduct and Standards of Vendor Engagement, and was contrary to the high ethical standards to which the company hold itself, and its vendors.

As soon as Target's investigation confirmed the substitution, it pulled all remaining product from Target stores and Target.com. On 19 August 2016, the company began reaching out to all REDcard and Target.com customers who purchased the sheets between August 2014 and July 2016 and offered them a full refund. The company is reassuring its customers that this is not an issue of safety and there is no risk in continuing to use this product.

Source: http://www.business-standard.com/article/news-cm/welspun-india-slumps-after-us-based-client-severs-ties-with-company-116082200217_1.html

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