Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Footasylum is set to accelerate its growth plans across the UK and beyond after securing a £35m revolving credit facility (RCF) from HSBC UK.
Footasylum was acquired by Aurelius, a global alternative investor, in August 2022. Since then, the company has embarked on a strategic store opening and upsizing programme, which has seen it open a flagship 20,000 sq ft store on Oxford Street in London, as well as at multiple UK shopping destinations.
The HSBC UK RCF funding package includes a Sustainability Improvement Loan (SIL), which links the cost of borrowing to Footasylum’s sustainability performance, monitored using an EcoVadis ESG (Environmental, Social, and Governance) rating.
As part of its Environmental Policy, Footaslyum has committed to achieve a carbon net zero target for scope 1 and 2 emissions by 2030 and Scope 3 by 2040. The retailer began offsetting its carbon emissions in 2020 and plans to have a fully electric or hybrid fleet by 2025, with 70% of logistics journeys already powered by biodiesel.
The retailer plans to use the RCF funding to roll out a store expansion programme, starting with the new opening in Aberdeen in September, with Warrington and Doncaster to follow in early October. This will be followed up with two further openings in Rotherham and Wrexham later this year. The company’s Merry Hill store will be tripled in size.
In addition, the RCF will enable Footasylum to enhance its technology capabilities, with the further development of the new modular, mobile-first omnichannel retail solution. It will also support the development of Footasylum’s key exclusive brands, including Zavetti Canada, Alessandro Zavetti, and Monterrain.
Nick Scott, chief financial officer at Footasylum, said: “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.
“We’re hugely excited about the opportunities ahead and the positive impact these plans will have on both our business and the communities we serve.”
Zubayr Atcha, global relationship director, corporate banking for HSBC UK, added: “We are pleased to support a leading omnichannel retailer such as Footasylum in its next phase of growth. This funding will provide the flexibility needed to drive expansion plans, support their sustainability strategy and further establish the retailer’s presence in the fast-growing street and sportswear market.
“Footasylum is a dynamic force in the consumer space, and we’re thrilled to be a part of their continued success and sustainability journey.”
