Footasylum has secured a £35m credit facility from HSBC to support its UK expansion and sustainability efforts.
- The credit facility includes a Sustainability Improvement Loan linked to Footasylum’s ESG performance, which may reduce interest rates upon meeting targets.
- Footasylum plans to open new stores in several major UK locations, including Aberdeen and Oxford Street.
- The funding will also bolster Footasylum’s investments in digital customer experiences and omnichannel technology.
- Sustainability remains a focus, with efforts towards achieving net-zero carbon emissions and increasing the use of environmentally friendly logistics.
Footasylum has successfully secured a substantial £35 million funding package from HSBC. This financial support is intended to fuel Footasylum’s expansion and sustainability initiatives throughout the United Kingdom. A noteworthy component of this funding arrangement is the inclusion of a Sustainability Improvement Loan. This loan, in particular, ties interest rates to the environmental, social, and governance (ESG) performance metrics assessed by EcoVadis. As a result, Footasylum stands to gain from reduced interest rates should it achieve its pre-established sustainability targets.
The acquisition by Aurelius in 2022 heralded an era of aggressive expansion for Footasylum. This is evidenced by the opening of flagship stores, notably a 20,000 square foot establishment on Oxford Street. In line with these developments, the recent funding will facilitate the launch of new stores by the end of the year in prominent UK locations such as Aberdeen, Warrington, Doncaster, Rotherham, and Wrexham.
Beyond physical store expansions, Footasylum is poised to enhance its investments in omnichannel technology. This will significantly improve the digital customer experience, a strategic move to support its in-house brands, including Zavetti Canada and Monterrain, and to strengthen its position in the rapidly growing streetwear market.
Sustainability remains a central pillar of Footasylum’s strategy. The company has set ambitious goals to achieve carbon net-zero for Scope 1 and 2 emissions by 2030, and Scope 3 by 2040. Since 2020, Footasylum has made commendable progress in offsetting carbon emissions. Additionally, the company is committed to transitioning its vehicle fleet to electric or hybrid models by 2025. Currently, 70% of its logistics operations are powered by biodiesel, and its carrier bags are fabricated from entirely recycled materials.
Commenting on these developments, Footasylum CFO Nick Scott stated, “This funding from HSBC UK is a key milestone in our growth journey and will help us achieve our ambitious environmental policy. It will enable us to not only expand our footprint in key locations across the UK but also accelerate our omnichannel technology investments, continue to grow Footasylum’s highly popular exclusive brands, and incubate the influencer talent that underpins our unique and highly successful marketing strategy.” Zubayr Atcha, HSBC UK’s Global Relationship Director for Corporate Banking, expressed excitement about Footasylum’s trajectory, describing the company as “a dynamic force in the consumer space.”
In the previous financial year, Footasylum reported a record revenue of £319.5 million, an increase from £298 million, with pre-tax profit more than doubling to £6 million.
Footasylum’s strategic expansion and sustainability efforts, supported by HSBC’s funding, demonstrate a strong commitment to growth and environmental responsibility.
