Footasylum has secured a £35 million ($46 mm) revolving credit line from HSBC to support its expansion and sustainability initiatives. The funding includes a Sustainability Improvement Loan (SIL) that links interest rates to the company’s environmental, social and governance (ESG) performance, measured by EcoVadis. If the footwear retailer hits pre-agreed sustainability targets, it could benefit from lower interest rates on the loan.
Footasylum has set a goal to achieve carbon net zero 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 percent of logistics journeys powered by biodiesel. Footasylum manufactures its carrier bags from 100 percent recycled material, which aligns with its sustainability efforts. The company reported in a media release that it is “committed to a Make it Wild environmental tree planting partnership.”
Footasylum reported that with the additional funding, it plans to accelerate store expansion, starting with its Aberdeen store in September, followed by Warrington and Doncaster in early October. The openings in Rotherham and Wrexham precede those in Rotherham and Wrexham that will open later this year. The company’s Merry Hill store will triple in size.
In addition, Footasylum noted that the additional funding will “enhance its technology capabilities, with further development of a new modular, mobile-first omnichannel retail solution. It will also support the development of the company’s exclusive brands, including Zavetti Canada, Alessandro Zavetti and Monterrain, as well as the expansion of streetwear offerings.
HSBC UK’s funding will also provide Footasylum with the financial support to explore international acquisition opportunities.
Since being sold by JD Sports to Aurelius in 2022, Footasylum has been opening and upsizing locations, including a 20,000-square-foot flagship on Oxford Street. It now has 66 stores across the UK.
Footasylum CFO Nick Scott 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.”
HSBC UK global relationship director, corporate banking Zubayr Atcha added, “Footasylum is a dynamic force in the consumer space, and we’re thrilled to be a part of their continued success and sustainability journey.”
Image courtesy Footasylum
