Footasylum has secured a £35m funding package from HSBC to support expansion and green initiatives across the UK.
- The funding includes a Sustainability Improvement Loan, linking interest rates to environmental, social, and governance performance.
- Aggressive expansion plans include new stores in major UK locations by year-end, despite financial challenges.
- Omnichannel technology investments aim to enhance digital customer experiences and support in-house brands.
- Sustainability goals target carbon net-zero emissions by 2030, with significant progress since 2020.
Footasylum, a prominent player in the fashion industry, has recently secured a £35 million funding package from HSBC, aimed at facilitating both expansion and commitment to sustainability across the United Kingdom. This financial backing includes a noteworthy Sustainability Improvement Loan (SIL), which intriguingly ties the interest rates to the company’s success in meeting predetermined environmental, social, and governance (ESG) targets, as assessed by EcoVadis. Such an arrangement allows Footasylum the opportunity to benefit from potentially reduced interest rates, should they achieve these sustainability goals.
Post-acquisition by Aurelius in 2022, Footasylum has pursued a vigorous expansion strategy, exemplified by the opening of flagship locations, including a notable 20,000 square foot store on Oxford Street, London. With the newly acquired funds, the company plans further expansion, with new store openings anticipated in Aberdeen, Warrington, Doncaster, Rotherham, and Wrexham before the year concludes. This aggressive growth strategy underscores Footasylum’s ambition to strengthen its retail presence across prime locations in the UK.
Beyond mere physical expansion, Footasylum is set to channel part of their funding into advancing omnichannel technologies, designed to refine and enrich their digital customer interactions. This technological investment is poised to bolster Footasylum’s exclusive brands, such as Zavetti Canada and Monterrain, while also cementing their stature within the burgeoning streetwear market. Additionally, the funding is expected to support Footasylum’s strategy of fostering influencer talent, which is integral to their unique and effective marketing approach.
In alignment with their expansion objectives, Footasylum remains resolutely focused on sustainability. The company is fervently working towards achieving carbon net-zero emissions for both Scope 1 and 2 by 2030 and aims for net-zero Scope 3 emissions by 2040. Having already made commendable advancements, including carbon offsetting since 2020 and a committed transition towards an electric or hybrid vehicle fleet by 2025, Footasylum is committed to furthering its environmental goals in conjunction with the new funding. Currently, a significant 70% of their logistics operations are fuelled by biodiesel, and their commitment extends to offering carrier bags made entirely from recycled materials.
Nick Scott, CFO of Footasylum, emphasised the strategic importance of this funding, stating, “This funding from HSBC UK is a key milestone in our growth journey and will help us achieve our ambitious environmental policy.” Meanwhile, Zubayr Atcha, HSBC UK’s global relationship director for corporate banking, remarked, “Footasylum is a dynamic force in the consumer space, and we’re thrilled to be a part of their continued success and sustainability journey.” The retailer’s financial accomplishments are evident, with record revenues of £319.5 million in the last financial year, marking an increase from the previous year’s £298 million, alongside a more than twofold rise in pre-tax profit to £6 million.
Footasylum’s strategic financial manoeuvre with HSBC is set to significantly bolster its market presence and sustainability objectives across the UK.
