EDUN APPAREL, the Fairtrade clothing brand founded by Ali Hewson, made a loss of $8.7 million (€6.8 million) in 2009, an increase of 90 per cent on the losses recorded the previous year.
However, the company’s net liabilities narrowed to $10.4 million at the end of 2009, compared to $19.1 million 12 months earlier, according to accounts recently filed at the Companies Office.
According to the documents, the company is financed by way of shareholder loans on an unsecured and interest-free basis.
“The shareholders have confirmed that they will not seek repayment of said loans for the foreseeable future and they will provide the company with sufficient finance to ensure the continued operation of the company,” the accounts for Edun Apparel Limited state.
A subsidiary of the company, Edun Americas Inc, incorporated in the US made an unaudited net profit of almost $38,000, down from around $65,800 the previous year, according to Edun.
The company, which is controlled by Ali Hewson and her husband, U2 singer Bono, has shareholders’ loans of $11.4 million.
The other four directors of the company are Gary Jermyn, Antonio Belloni, Mark Weber and Matthieu Brisset. The last three directors are all executives in LVMH Moet Hennessy Louis Vuitton, the world’s largest maker of luxury goods, which bought a minority stake in Edun for an undisclosed sum in May 2009.
Mr Weber, who is overseeing the equity investment in Edun, is the chief executive of the LVMH-owned Donna Karan International. Donna Karan International charged Edun $250,000 in expenses in 2009.
According to its website, Edun is “a contemporary lifestyle brand founded with the mission to encourage trade in Africa and build awareness of what is possible there”.
