Target is offering customers millions of dollars in refunds after discovering that it sold fake Egyptian cotton sheets.
The sheets were manufactured by Welspun India, a global textile company that’s a key supplier to many US retailers including Bed Bath & Beyond, Walmart, JCPenney, and Macy’s, Bloomberg reports.
Welspun’s shares have fallen 20% after the news.
The sheets were sold at Target for as much as $175 per set under the labels Fieldcrest and Crowning Touch.
Target recently pulled them from store shelves and its website, and now the company is offering a full refund to anyone who bought the sheets between August 2014 and July 2016.
Target is one of Welspun’s biggest customers, accounting for $90 million in sales in the last fiscal year, according to Bloomberg. Target is now terminating its relationship with Welspun.
“After an extensive investigation, we recently confirmed that Welspun substituted another type of non-Egyptian cotton when producing these sheets between August 2014 and July 2016,” Target said in a statement.”We have informed Welspun that, due to this conduct, we are in the process of terminating our relationship with them.”
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