New figures lodged with the Companies Office show that Edun Apparel Ltd recorded a loss of $7.88m (€5.9m) in the 12 months to the end of December last (2012) and this followed the firm recording losses of $8.5m in 2011.
The two established the global fashion brand in 2005 in an effort to bring about positive change through its trading relationship with Africa and its positioning as a creative force in contemporary fashion.
In spite of the losses, Bono and Ali Hewson in their directors’ report state that they “are very satisfied with progress during the year, which was in line with the (Five Year) Strategic Business Plan projections”.
The directors state that “the company is currently in investment phase and has made much progress in building its supply chain, brand, marketing materials and retail partnerships, as well as the implementation of its mission”.
Accumulated losses at the firm total $54.5m and figures show that the firm’s shareholders, Bono, Ali Hewson and the world’s largest luxury goods group, LVMH further propped up the firm with an additional $17.8m in loans in 2012 bringing to €54m in shareholder loans.
LVMH — which owns some of the world’s top luxury brands — owns 49% of Edun Apparel.
Arising from the 2009 deal to purchase just under half of Edun, LVMH provides support, investment and infrastructure to help the business grow and support its vision to grow trade in Africa.
The figures show that Edun’s net liabilities increased from $29.1m to $37m during the year.
A note attached to the accounts addressing the firm’s going concern status states that the company is financed by way of shareholder loans.
The directors’ report states that the Edun product is produced in a broad base of factories and includes sourcing from Tunisia, Kenya, Uganda, Madagascar, Morocco, Peru and China.