Footasylum secures £35m funding package to fuel expansion and sustainability initiatives
Footasylum is to accelerate growth across the UK after securing a £35 million revolving credit facility.
The footwear and sportswear retailer will use the new funding from HSBC to roll out a store expansion programme which will include the launch of new stores in Rotherham and Wrexham later this year. It will also be used to explore international acquisition opportunities and expand the influencer partnerships that have underpinned the company’s successful content marketing strategy.
The package also includes a Sustainability Improvement Loan which links the cost of borrowing to Footasylum’s sustainability performance.
Nick Scott, chief financial officer at Footasylum, 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.”
Since its acquisition by Aurelius in August 2022, Footasylum has been implementing a strategic store opening and upsizing programme, which has included the launch of a flagship 20,000 square foot store on London’s Oxford Street.
As part of its environmental policy, Footaslyum has committed to achieve a carbon net zero target for scope 1 and 2 emissions by 2030 and Scope 3 by 2040.
Tobias Klaiber, managing director at Aurelius Operations Advisory, said: “Since being backed by Aurelius, the business has been supported in its successful transformation from a retailer to a brand builder and into a disruptive entertainment company.
“The HSBC Sustainability Improvement Loan will enable Footasylum to further drive its ESG initiatives, and reflects its commitment to be an accountable sustainability leader.”
With over 61 stores nationwide, Footasylum saw its revenues increase to £319.5 million in the year to 27 January 2024 from £298 million in the previous financial year.
Meanwhile, pre-tax profit climbed by 112% following strong performances in its online and wholesale divisions.
