Footasylum has secured a significant £35 million funding from HSBC to support its growth and sustainability efforts.
- The funding includes a unique Sustainability Improvement Loan linked to Footasylum’s ESG performance, offering potential interest rate reductions.
- Footasylum plans to expand with new flagship stores across the UK, including outlets in Aberdeen, Warrington, and Doncaster.
- The initiative aims to improve omnichannel experiences, enhance digital engagement, and support the expansion of in-house brands.
- The funding aligns with Footasylum’s environmental goals, including achieving carbon net-zero emissions for different scopes by 2030 and 2040.
Footasylum has obtained a £35 million funding facility from HSBC, aimed at bolstering its expansion and sustainability objectives throughout the UK and beyond. This financial backing is designed to support the retailer’s strategic growth plans, including the establishment of flagship stores in key shopping areas such as Oxford Street, Aberdeen, Warrington, Doncaster, Rotherham, and Wrexham. The funds will also empower Footasylum to enhance their omnichannel capabilities, thus providing a more seamless digital experience for customers.
Significantly, the funding package features a Sustainability Improvement Loan (SIL), which is uniquely linked to Footasylum’s performance in environmental, social, and governance (ESG) criteria. This innovative financial instrument, gauged by EcoVadis, offers Footasylum the advantage of lower interest rates conditional upon meeting certain pre-agreed sustainability benchmarks. This structure incentivises the company to adhere closely to its environmental commitments.
Footasylum’s commitment to sustainability is further evidenced by its ambitious goals to attain carbon net-zero status for Scope 1 and 2 emissions by 2030, and Scope 3 by 2040. The company has already taken meaningful steps by offsetting carbon emissions since 2020 and pledging to transition to an electric or hybrid vehicle fleet by 2025. With 70% of its logistics journeys currently powered by biodiesel and all carrier bags crafted from 100% recycled materials, Footasylum is setting a commendable standard within the retail sector.
The financing will simultaneously bolster Footasylum’s position in the burgeoning streetwear market by allowing it to grow its exclusive brand portfolio, including Zavetti Canada and Monterrain. This expansion is complemented by a focus on incubating influencer talent, which forms a core part of their marketing efforts.
Commenting on this development, Footasylum CFO Nick Scott stated that the funding marks a crucial milestone for the company’s growth trajectory, underscoring its dual focus on expanding their physical presence and enhancing technological integration. HSBC UK’s Zubayr Atcha highlighted Footasylum as a dynamic entity within the consumer space, expressing enthusiasm for supporting its continued success and sustainability strategies.
Footasylum’s strategic funding initiative from HSBC positions it for robust growth and sustainable development in the coming years.
