The ethical clothing company owned by U2 frontman Bono and wife Ali Hewson has suffered $86.4million (£62million) in accumulated losses, it has been revealed.
New figures from the Companies Office reveal that Edun Apparel LTD had a recorded loss of $5.7million (£4.4million) in the 12 months to the end of last December, reports the Irish Mirror.
It continued the trend of hefty annual deficits recorded over recent years for the firm and 2017 followed losses of $6.3million in 2016, $7.56million in 2015 and before that a $5.57million loss recorded in 2014.
Edun had losses of $6.4million in 2013; $7.88million in 2012 and $8.5million in 2011 resulting in accumulated losses of $47million since 2011. The company lost almost $28million in its first five years.
The global fashion brand was established in 2004 in an effort to bring about positive change through its trading relationship with Africa and its positioning as a creative force in contemporary fashion.
Bono’s clothing company lost almost $28million in its first five years
Rock singer Bono of U2 poses with his wife Ali Hewson
The business sustained a hefty blow in June of this year when luxury brand giant, LVMH decided to exit the business after the years of continuing losses. It is the fashion industry’s largest conglomerate and counts Louis Vuitton and Christian Dior among its brands.
LVMH first invested in Edun back in 2009, taking a 49% stake in the business and a spokesman in June confirmed it would effectively return its stake in Edun for no financial consideration.
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The star branched out into retail in 2004
In a statement at the time of LVMH exiting the business, Edun stated: “In light of a joint review of the business, Edun is restructuring its operations in preparation for its next chapter and LVMH will transfer its shares back to the founders.”
The announcement coincided with reports that Edun was ceasing its operations in the US and followed Edun’s single storefront in New York City, on Lafayette Street in Manhattan, closing at the end of May.
Mirror Online has contacted representatives for comment.
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