Bono and Ali’s ethical clothing line sees losses hit $74m

Accumulated losses at the ethical clothing company controlled by Bono and Ali Hewson soared to $74.3m (€67.2m) last year.

New figures lodged with the companies office show that EDUN Apparel Ltd recorded a loss of $7.56m in the 12 months to the end of December last.

The loss last year continued the trend of hefty annual losses recorded over recent years — the loss last year was a 35% increase on the $5.57m loss recorded in 2014.

This followed losses of $6.4m in 2013; $7.88m in 2012; and $8.5m in 2011.

Bono and Ms Hewson 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.

Pop star Rihanna was one of the front-row guests at the New York launch its 2015 spring collection.

The fashion brand is based in New York City and its website states that “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”.

The 2015 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, Moet Chandon, and Donna Karan — owns 49% of EDUN Apparel.

A note attached to the accounts states 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.”

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

Bono and Ms Hewson have featured in Louis Vuitton’s Core Values ad campaign, with the two wearing EDUN-brand clothing on location in Africa in Annie Leibovitz photos.

The figures show EDUN’s net liabilities increased from $45.5m to $51.67m during the year. Its cash pile increased from $2.24m to $3m, while management fees charges by US-based subsidiary EDUN Americas last year increased from $2.6m to $3.1m.

A note attached to the accounts states that Bono, Ms Hewson, and the firm’s other directors have prepared budgets and cashflows for a period of at least 12 months from the date of the approval of the financial statements, which, it says, demonstrates that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due and to continue as a going concern.