Footasylum has secured significant funding to enhance its presence and sustainability measures across the UK.
- A £35m funding package from HSBC will finance Footasylum’s expansion and eco-friendly practices.
- The loan includes a Sustainability Improvement Loan tied to environmental performance targets.
- Upcoming store openings are planned for key UK locations, including Aberdeen and Warrington.
- Investment will also enhance technology for better digital customer experiences.
Footasylum has strategically acquired a £35 million funding package from HSBC, a move poised to significantly bolster its expansion efforts and advance its environmental sustainability goals across the United Kingdom. The funding, notably, incorporates a Sustainability Improvement Loan (SIL), linking the interest rates directly to the company’s environmental, social, and governance (ESG) performance. This mechanism, assessed by EcoVadis, offers the potential benefit of reduced interest rates contingent upon meeting specified sustainability targets.
Since Footasylum’s acquisition by Aurelius in 2022, the company has embarked on an aggressive expansion journey. This includes the opening of flagship stores, such as a notable 20,000 square foot outlet on Oxford Street, alongside numerous other openings in major shopping destinations nationwide. The newly secured funding is set to facilitate further store rollouts in Aberdeen, Warrington, Doncaster, Rotherham, and Wrexham by the year’s end.
Beyond the physical expansion, Footasylum intends to channel part of the funding into enhancing its omnichannel technology. This initiative is aimed at streamlining digital customer experiences, supporting in-house brands like Zavetti Canada and Monterrain, and solidifying its position in the burgeoning streetwear market.
Footasylum is prioritizing sustainability, setting ambitious targets such as achieving carbon net-zero for Scope 1 and 2 emissions by 2030 and for Scope 3 emissions by 2040. The company has taken substantive steps toward these goals, including offsetting carbon emissions since 2020 and advancing towards a completely electric or hybrid vehicle fleet by 2025. Presently, nearly 70% of its logistics operations utilize biodiesel, and its carrier bags are manufactured entirely from recycled materials.
Nick Scott, CFO of Footasylum, emphasized the significance of this funding, identifying it as a major milestone in their growth trajectory. According to Scott, it empowers Footasylum to expand in pivotal locations within the UK, accelerate omnichannel technology investments, and continue nurturing exclusive brands and influencer talent integral to their marketing strategy. The company’s record revenues of £319.5 million in the last financial year underscore its dynamism and readiness for further growth.
This strategic financial boost positions Footasylum well for sustainable expansion and technological advancement.
