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The Wall Street Journal: Wal-Mart to stop selling Welspun India’s Egyptian cotton sheets

Wal-Mart Stores Inc. said it would stop selling Egyptian cotton sheets made by Welspun India Ltd., after its investigation found the Indian textile giant couldn’t guarantee the products were legitimate.

“Welspun has not been able to assure us the products are 100% Egyptian cotton, which is unacceptable,” Wal-Mart WMT, -2.13% spokeswoman Marilee McInnis said.

The world’s biggest retailer is removing the Welspun products from U.S. store shelves and Walmart.com. Wal-Mart said it would offer customers who purchased the products a full refund. It will donate the sheets currently on shelves.

The move is the latest blow to the Indian textile company after Target Corp.

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