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Losses Continue To Mount At Ethical Clothing Company Founded By Bono


febottini
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New figures lodged with the Companies Office show that Edun Apparel Ltd recorded a loss of $7.88m (€5.9m) in the 12 months to the end of December last (2012) and this followed the firm recording losses of $8.5m in 2011. 

The two 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 and Ali Hewson in their directors’ report state that they “are very satisfied with progress during the year, which was in line with the (Five Year) Strategic Business Plan projections”. 

The directors state that “the company is currently in investment phase and has made much progress in building its supply chain, brand, marketing materials and retail partnerships, as well as the implementation of its mission”. 

Accumulated losses at the firm total $54.5m and figures show that the firm’s shareholders, Bono, Ali Hewson and the world’s largest luxury goods group, LVMH further propped up the firm with an additional $17.8m in loans in 2012 bringing to €54m in shareholder loans. 

LVMH — which owns some of the world’s top luxury brands — owns 49% of Edun Apparel. 

Arising from the 2009 deal to purchase just under half of Edun, LVMH provides support, investment and infrastructure to help the business grow and support its vision to grow trade in Africa. 

The figures show that Edun’s net liabilities increased from $29.1m to $37m during the year. 

A note attached to the accounts addressing the firm’s going concern status states that the company is financed by way of shareholder loans. 

The directors’ report states that the Edun product is produced in a broad base of factories and includes sourcing from Tunisia, Kenya, Uganda, Madagascar, Morocco, Peru and China.

 

From: Irish Examiner

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I received an email from Edun saying shop on line has been closed- Maybe they want to focus on a few high standard boutique. No surprise considering Edun is a branch of LV now

Edited by monica martino
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I received an email from Edun saying shop on line has been closed- Maybe they want to focus on a few high standard boutique. No surprise considering Edun is a branch of LV now

 

"...Edun is a branch of LV now."  A branch of it? Well, the article says Louis Vuitton MH owns 49% of Edun Apparel, so that wouldn't make it "a branch" of LVMH. (That makes it sound like it's owned by LVMH when it's not.)

 

The article did say that Bono & Ali "are very satisfied with progress during the year, which was in line with the (Five Year) Strategic Business Plan projections." All the best to them & to Edun. Our world needs people in business willing to do the work of trying to greatly increase the ethics of world trade.

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1 no mercy on not english mother tongue? :)

 

2 That 49% counts as 51% ;)

 

 

Oh - I'm sorry Monica! I didn't mean it in a negative way at all. :) If English isn't your mother tongue, all I can say is that I hope to speak Spanish some day as well as you speak English! :)

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It's normal to have huge losses, especially if they are in the middle of dumping money in, you really can't

judge the numbers on a year over year period. It's gotta be in 5, 10, years before you can actually calculate what is going on...although personally I think its been heavily mismanaged...I can't figure out who their

core client is they are selling to. It doesn't have broad appeal or attached to an industry that it can piggy back off of. I think we also use the term Sister company in re: LVMH, they certainly are not the Parent

company of Edun. I can see Edun being able to slash costs bigtime by using LVMH resources, it's not that big of a deal either way on the losses. They are small in comparison to some companies out there right now their losses.

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Maybe I'm completely wrong in what I'm about to write, I don't know anything about clothing business, but I think that the designs and the  kind of clothes Edun is selling don't match the luxury prices, I'm sure they can't sell these items at lower prices if they are paying fair sallaries and they have just a small line of production, but I also think that not many people who buy this kind of designs can afford Edun's prices and that's a problem.

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