Footasylum has secured a £35m funding package from HSBC to fuel its expansion and sustainability initiatives across the UK and beyond.
The funding includes a Sustainability Improvement Loan (SIL) that links interest rates to Footasylum’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.
Since being acquired by Aurelius in 2022, Footasylum has expanded aggressively, opening flagship stores, including a 20,000 sq ft space on Oxford Street, alongside other store openings across major UK shopping destinations.
With the new funding, Footasylum will roll out new stores in Aberdeen, Warrington, Doncaster, Rotherham, and Wrexham by the end of the year.
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Beyond store growth, the funding will allow Footasylum to invest in omnichannel technology to create a more seamless digital customer experience.
This includes supporting its in-house brands like Zavetti Canada and Monterrain, as well as expanding its presence in the fast-growing streetwear market.
Sustainability is also a key focus, with the company aiming to achieve carbon net-zero for Scope 1 and 2 emissions by 2030, and for Scope 3 by 2040.
It has already made progress by offsetting carbon emissions since 2020 and committing to an electric or hybrid vehicle fleet by 2025.
Currently, 70% of its logistics journeys are powered by biodiesel, and its carrier bags are made from 100% recycled material. The new funding will further enable Footasylum to meet its ESG targets.
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.”
In the last financial year, the retailer posted record revenues of £319.5m, up from £298m the previous year, as pre-tax profit more than doubled to £6m.
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