(Adds Cotton On comments in the third and fourth paragraphs)
Dec 24 (Reuters) - Australian clothing retailer Cotton On Group on Tuesday said it is investigating a Chinese supplier after British supermarket operator Tesco PLC TSCO.L suspended ties with the same supplier due to fears of the use of forced prison labour.
Tesco launched an investigation into ties with Zhejiang Yunguang Printing after media reports of a customer finding a message inside a Christmas card produced by Zhejiang and bought from one of Tesco's stores saying the product had been packed by foreign prisoners. becoming aware of the issue the Cotton On Group has launched an investigation into the supplier," said Greer McCracken, communications general manager at Cotton On.
Cotton On said it takes a zero-tolerance approach to any form of modern slavery, including forced labour.
Tesco said the Christmas cards were produced at a Zhejiang Yunguang Printing factory, about 100 km (60 miles) from Shanghai Qingpu prison.
Zhejiang Yunguang Printing did not respond to a Reuters request for comment. China's foreign ministry on Monday dismissed accusations of forced labour at the Shanghai prison. News on Monday reported that Zhejiang Yunguang Printing also lists U.S. firms Walt Disney (NYSE:DIS) Co DIS.N and Big Lots (NYSE:BIG) Inc BIG.N among its international partners.
Neither Disney nor Big Lots responded to Reuters requests for comment outside of regular business hours.
China denies forced labour accusations after plea found in Christmas card