Losses at Bono and Ali’s clothing firm hit $66m

Losses continued to mount last year at the ethical clothing company founded by Bono and his wife, Ali Hewson.

Losses at Bono and Ali’s clothing firm hit $66m

New figures lodged with the Companies Office show that Edun Apparel Ltd recorded a loss of $5.34m (€4.6m) in the 12 months to the end of December last.

The firm has been narrowing its losses over recent years and the loss last year followed losses of $6.4m in 2013, $7.88m in 2012 and $8.5m in 2011.

At the end of December last, the accumulated losses at the firm stood at $66.3m.

The Hewsons 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, Ali Hewson and the other directors state in the accounts that they “are confident that the current business strategy will result in the development of a successful and sustainable brand”.

The firm’s website states that “Edun is building long-term, sustainable growth opportunities by supporting manufacturers, community-based initiatives and partnering with African artists and artisans”.

The new accounts show the firm’s shareholders, the Hewsons and the world’s largest luxury goods group, LVMH, further propped up the firm with an additional $13.24m in loans in 2014 bringing to $84.92m in shareholder loans.

LVMH, which owns luxury brands including Louis Vuitton, Moet Chandon and designer brand Donna Karan, owns 49% of the firm.

A note attached to the accounts states that that the company is financed by way of shareholder loans.

“The shareholders have confirmed that they will not seek repayment of the said loans for the foreseeable future and they will provide the company with sufficient finances to ensure the continued operation of the company.”

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