Target is considering shifting its bedsheets orders to Trident after Welspun India was caught passing off cheaper sheets as premium Egyptian cotton
Mumbai: Target Corp. is considering shifting its bedsheets orders to Trident Ltd, a supplier among those that stand to win some of the $90 million in business that rival Welspun India Ltd lost after it was caught passing off cheaper sheets as premium Egyptian cotton, according to people familiar with the discussions. Trident shares jumped to the highest level in two months.
Target has begun sampling sheets manufactured by Trident, according to the people who asked not to be identified as the talks are private. Trident, which says it’s the world’s largest maker of terry towels, currently supplies them to the retailer and is one of the few Indian companies with the capacity to produce more bedsheets, they said.
“We have previously shared that we were actively working with existing vendors on our matrix to determine where we move the business. Trident is one of our current vendors," said Target spokeswoman Molly Snyder on Thursday. “It would be premature to speculate on how we will plan for, and distribute, our business."
Trident shares gained as much as 7.2%, the highest level since 22 June. A Trident representative declined to comment.
Target on 19 August severed business ties with India’s largest home textiles exporter after the company said it discovered that sheets and pillows labelled as premium Egyptian cotton were actually made with another type of cotton. The retailer pulled the items from its stores and offered customers refunds. Other Welspun customers, including Wal-Mart Stores Inc., Bed Bath & Beyond Inc. and J.C. Penney Co., said they are reviewing Welspun’s product claims and certification records. Bloomberg
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