Footasylum has obtained a £35 million green loan from HSBC UK to support its growth initiatives, integrating key sustainability goals.
- The loan will fund Footasylum’s UK and international expansion, starting with new store openings in Aberdeen, Warrington, and Doncaster.
- New job opportunities will arise from the expansions, with over 100 positions projected to open across the UK.
- The loan includes provisions for reduced interest rates if Footasylum meets sustainability targets, fostering a commitment to eco-friendly practices.
- Footasylum is also focusing on enhancing technology and developing exclusive brands as part of its strategic growth plan.
Footwear and sportswear retailer Footasylum has secured a substantial £35 million green loan from HSBC UK. The primary purpose of this loan is to fuel its expansion plans across the UK and international markets, with an emphasis on sustainability.
The organization plans to use the funds to initiate a store expansion strategy, beginning with new stores in Aberdeen, Warrington, and Doncaster, and later in Rotherham and Wrexham. This strategic growth is anticipated to generate more than 100 new jobs nationwide, providing an economic boost to the regions of these openings.
A key aspect of this funding is a sustainability improvement loan component, which offers potential reductions in interest rates contingent on Footasylum achieving specified sustainability ratings. These ratings will be assessed annually by EcoVadis ESG, underscoring Footasylum’s commitment to environmentally responsible business practices.
Footasylum has pledged to reach a carbon net zero target for scopes 1 and 2 by 2030, and for scope 3 by 2040. As part of its environmental strategy, the company began offsetting carbon emissions in 2020 and plans to transition to a fully electric or hybrid fleet by 2025. Presently, 70% of its logistics operations are powered by biodiesel. Additionally, its carrier bags are made from 100% recycled materials, and it is engaged in a ‘Make it Wild’ tree-planting initiative.
Acquired by Aurelius, a global alternative investor, in August 2022, Footasylum has since embarked on significant store openings and expansions, such as its flagship store on London’s Oxford Street. The new funding will also enable Footasylum to enhance its technological capabilities, focusing on a modular, mobile-first omnichannel retail approach. This transition aims to create a seamless digital-first customer experience.
In addition to store expansions and technological advancements, Footasylum is set to develop its exclusive brands like Zavetti Canada, Alessandro Zavetti, and Monterrain. The retailer intends to also capitalize on social media partnerships and influencer collaborations to drive its content marketing strategy forward.
Nick Scott, CEO of Footasylum, stated, ‘This funding from HSBC UK is a key milestone in our growth journey and will help us achieve our ambitious Environmental Policy.’ Zubayr Atcha, Global Relationship Director, Corporate Banking for HSBC UK, echoed this sentiment, emphasizing the flexibility the funding provides to support expansive plans and sustainability strategies.
Footasylum’s green loan signifies a pivotal step in its strategic growth and sustainability journey, aligning financial success with environmental responsibility.
