LVMH to take stake in ethical fashion brand Edun

By Astrid Wendlandt

PARIS (Reuters) - LVMH is to take a minority stake in Edun, the ecological and ethical fashion start-up founded by Irish singer and campaigner Bono and his wife, the world's biggest luxury group said on Thursday.

Launched in 2005, Edun aims to promote sustainable development and fair trading by selling T-shirts and dresses in organic cotton made in countries such as India, Peru, Uganda, Kenya and Lesotho.

Financial details of the deal were not disclosed.

"We are proud to contribute to the operational development of Edun and to the improvement of living standards of local communities," LVMH Chief Executive Bernard Arnault said in a statement.

The French group's other fashion brands include Celine, Kenzo, Donna Karan and Louis Vuitton.

Bono, whose real name is Paul Hewson, is the lead singer of rock band U2 and an active humanitarian campaigner, nominated for the Nobel Peace Prize.

"With LVMH, we can step up (Edun's) development, giving greater stability to our suppliers and the local communities they support," Bono said in LVMH's statement.

Edun will maintain its headquarters in Dublin and a subsidiary in New York. Mark Weber, head of Donna Karan International, will supervise LVMH's investment for the French luxury group.