Footasylum has secured significant funding to enhance its growth and sustainability strategies within the UK market.
- The £35m package from HSBC includes a Sustainability Improvement Loan that ties interest rates to ESG performance.
- Footasylum aims to achieve ambitious sustainability targets, aiming for carbon net-zero by 2040.
- Plans for expansion include new store openings across key UK locations such as Aberdeen and Warrington.
- Footasylum reports record revenues, highlighting its strong market position and growth potential.
Footasylum has successfully acquired a £35 million funding package from HSBC, designed to fuel its expansion and sustainability initiatives across the United Kingdom and beyond. This package is unique due to its inclusion of a Sustainability Improvement Loan (SIL), which links interest rates to Footasylum’s performance in environmental, social, and governance (ESG) metrics, as assessed by EcoVadis. If the company meets its sustainability targets, it can benefit from reduced interest rates—a significant incentive for continued improvement in sustainable practices.
Since its acquisition by Aurelius in 2022, Footasylum has embarked on an aggressive expansion strategy, marked by the opening of flagship stores, including a notable 20,000 square feet establishment on Oxford Street. This growth trajectory is set to continue with plans to launch new stores in Aberdeen, Warrington, Doncaster, Rotherham, and Wrexham before the year’s end. This strategic expansion aims to consolidate Footasylum’s presence in major UK retail centres, thereby strengthening its market footprint.
Beyond physical store growth, the funding will enable Footasylum to invest in omnichannel technology enhancements, thereby creating a more seamless digital experience for customers. This investment also extends support to its in-house brands and aims to boost its position in the rapidly growing streetwear market.
Sustainability remains at the forefront of Footasylum’s agenda, with clear targets set to achieve carbon net-zero for Scope 1 and 2 emissions by 2030, and Scope 3 by 2040. Since 2020, the company has made substantial progress in this domain, having offset carbon emissions and committed to transitioning to an electric or hybrid vehicle fleet by 2025. Currently, 70% of its logistics operations are biodiesel-powered, and its carrier bags are crafted from 100% recycled materials. This funding serves to further support Footasylum in achieving its ESG objectives.
Footasylum’s Chief Financial Officer, Nick Scott, expressed that this funding is a crucial milestone in the company’s growth journey. “This funding from HSBC UK is a key milestone in our growth journey and will help us achieve our ambitious environmental policy,” he stated. HSBC’s involvement underscores the financial institution’s confidence in Footasylum’s dynamic role within the consumer sector. Zubayr Atcha, HSBC UK’s Global Relationship Director of Corporate Banking, noted, “Footasylum is a dynamic force in the consumer space, and we’re thrilled to be a part of their continued success and sustainability journey.”
In the previous financial year, Footasylum achieved record revenues of £319.5 million, a noteworthy increase from £298 million the year before. This was accompanied by a more than doubling of pre-tax profit to £6 million, underscoring the company’s robust financial health and growth trajectory.
Footasylum’s strategic funding acquisition from HSBC marks a pivotal move in amplifying its retail and sustainability endeavours across the UK.
