Loss at Bono’s clothing firm

Accumulated losses at the ethical clothing company controlled by Bono and Ali Hewson soared to $80.6m (€68.5m).

New figures lodged with the Companies Office show that Edun Apparel Ltd recorded a loss of $6.3m last year, extending the losses of recent years.

Bono and his wife Ali established the global fashion brand in 2005 to bring about positive change through its trading relationship with Africa.

It sought to build a market as a creative force in contemporary fashion.

Based in New York City, the fashion brand on its website states: “In respect of its mission to source production and encourage trade in Africa, Edun mixes its modern designer vision with the richness and positivity of this fast-growing continent.”

“Edun is building long-term, sustainable growth opportunities by supporting manufacturers, community-based initiatives and partnering with African artists and artisans,” it adds.

The 2016 accounts show that the firm’s shareholders — Bono, Ms Hewson and the world’s largest luxury goods group LVMH — continue to prop up the firm by way of shareholder loans.

LVMH — which owns some of the world’s top luxury brands, including Louis Vuitton and Moet Chandon -- owns 49% of Edun Apparel.

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

The note states: “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.”

LVMH provides support, investment and infrastructure to help the business grow into a global fashion brand and support its vision to expand trade in Africa.

Bono and Ms Hewson have featured in Louis Vuitton’s Core Values ad campaign.

Photographs with the couple wearing Edun brand clothing on location in Africa were taken by Annie Leibovitz.

The figures show Edun’s net liabilities increased from $51.67m to $57m during the year.

The firm’s cash pile during the year increased from $3m to $4.2m.

The accounts show that management fees charges by US-based subsidiary Edun Americas Inc last year fell from $3.1m to $1.79m.

Directors’ pay totalled $107,382.

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