The French luxury group, owner of brands such as Louis Vuitton, Loewe and Kenzo has decided to sell its stake in the business back to the brand founders. The eco fashion label was founded by Ali Hewson.
LVMH puts an end to its sustainable journey with Edun. The French luxury group, owner of brands like Louis Vuitton and Loewe, has decided to part ways with the environmentally friendly brand, founded by Ali Hewson, wife of U2’s lead singer Bono.
Bono and Hewson kick-started Edun in 2005 with the aim of promoting textiles recycling, fair trade and working with artisans in Rwanda, Kenya and South Africa. Four years later, LVMH acquired a 49% stake in the company, which produces 95% of its collecions in sub-Saharan Africa.
After a review of the business, the French company has decided to transfer its stake to Edun founders, who will go ahead with the brand’s activity, according to Business of Fashion.
LVMH has decided to transfer its 49% stake in Edun back to the founders
Edun’s losses in fiscal 2015 amounted to 7.56 million pounds (8.9 million euros), while accumulated losses soared to 74 million pounds (87.2 million euros) since the brands’ inception.
LVMH ended fiscal 2017 with an operating profit of 8.29 billion euros, 18% up. The company’s turnover amounted to 42.63 billion euros, 13% more than in the previous year. The group led by Bernard Arnault more than doubled its net debt in 2017 to 7.18 billion euros.