LVMH, the world’s largest maker of luxury goods, has bought a minority stake in fair-trade clothing brand Edun from U2 singer Bono and his wife Ali Hewson for an undisclosed amount.
“We are going to take a stake in Edun, an ecological and ethical brand,” LVMH chief executive Bernard Arnault told shareholders at LVMH’s annual shareholders’ meeting in Paris.
Edun, which was founded in 2005, specializes in organic-cotton fashions that are manufactured in developing countries including India, Peru, Kenya and Uganda. The company's mission is to promote trade as a way to boost communities and to encourage other entrepreneurs to do business in developing countries, particularly in Africa.
From the outset, Edun generated huge media attention, beginning with an eight-page feature in American Vogue.
“Our group is proud to contribute to the operational development of Edun’s activities, and of the local communities. LVMH is committed to advancing both the social and environmental aspects of sustainable development, which plays an intrinsic role in the development of our brands,” continued Arnault, France’s richest businessman.
Added Bono, "Edun is a small brand with a loud voice. With LVMH, we can grow bigger and faster than we could on our own and bring greater and longer-term stability to our manufacturers and the communities they support.”
"We started Edun so people could have a choice - to choose beautiful clothes with a great story behind them. LVMH’s investment is a vote of confidence in Edun and its mission and an important step in Edun’s journey to reach its full potential,” said Ali Hewson.
Edun will continue to be based in both Dublin and New York, after LVMH acquires its stakes. For LVMH, whose brands include fashion house Louis Vuitton, Dom Perignon champagne and Hublot watches, the Edun investment would mark a foray into the growing market for fashion businesses that have ecological and ethical goals.
