Days after Target terminated its relationship with one of the world’s biggest textile manufacturers after finding the company supplied the retailer with nearly a million sheet sets labeled as “Egyptian Cotton” that were actually made from non-Egyptian cotton, Walmart says it’s reviewing Welspun India’s records and cotton certifications. 

Bloomberg reports that Walmart is scrutinizing Welspun’s products and records to determine if there are any discrepancies with the quality and labeling of sheets and pillowcases provided to the world’s largest retailer.

A spokesperson for Walmart says the company will hold discussions with Welspun and “handle it appropriately” if issues are uncovered.

Walmart, along with Welspun’s largest customer Bed Bath & Beyond, sell 500 and 800 thread count sheets online under the Crowning Touch label for about $175, Bloomberg reports.

A rep for Welspun, which makes towels, sheets, rugs and carpets for 18 of the top 30 retailers around the world, didn’t provide comment on Walmart’s review.

The company previously told Bloomberg that it was reviewing its supply chain and would hire an accounting firm to examine its processes.

Analysts say the latest development is cause for worry for the manufacturer.

“It is likely that other customers too will start raising questions over Welspun’s supplies,” said Arun Kejriwal, a director at Kejriwal Research & Investment Pvt. in Mumbai, tells Bloomberg.

Troubles for the manufacturer began on Friday when Target pulled its products from shelves and began notifying customers that they’ll get a refund on certain products under the Fieldcrest label that sold for as much as $75.

Wal-Mart Reviews Welspun Records After Target Pulls Sheets [Bloomberg]

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