Footwear and sportswear retailer Footasylum has obtained a £35m revolving credit facility from HSBC UK to support its expansion plans and sustainability initiatives.
The loan is structured as a sustainability improvement loan, with interest rates tied to the retailer’s environmental, social and governance performance, as assessed by EcoVadis.
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Achieving predetermined sustainability targets could result in reduced interest rates for Footasylum.
The company has committed to reaching carbon net zero for Scope One and Two emissions by 2030 and Scope Three by 2040.
Footasylum has been carbon offsetting since 2020 and aims to transition to a fully electric or hybrid fleet by 2025. It also plans to run 70% of its logistics journeys on biodiesel.
Footasylum’s carrier bags are produced from 100% recycled materials, reflecting its dedication to sustainability.
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By GlobalDataThe retailer has also engaged in the Make it Wild environmental tree-planting partnership.
The new funding will facilitate the acceleration of store expansions, with a focus on locations such as Aberdeen, Warrington, Doncaster, Rotherham and Wrexham, and an enlargement of the Merry Hill store.
The investment will boost Footasylum’s technological advancements, including the development of a new modular, mobile-first omnichannel retail solution.
It will also support the growth of exclusive brands Zavetti Canada, Alessandro Zavetti and Monterrain, and the expansion of its streetwear collections.
HSBC UK’s backing will enable Footasylum to pursue international acquisition opportunities.
Since its acquisition by Aurelius from JD Sports in 2022, Footasylum has been actively opening and enlarging stores, including a flagship on Oxford Street in London, and now operates 66 stores across the UK.
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.”
