Footasylum has secured a £35 million Revolving Credit Facility (RCF) from HSBC UK with the footwear and sportswear omnichannel business “set to accelerate its growth plans across the UK and beyond”.

We’ve already seen in recent periods that the firm has been opening major new stores in Britain and that revenue rose strongly in its latest financial year.

Now we’re told that the business, which has been owned by Aurelius for just over two years, is to accelerate its growth plans.

The funding will be used to continue its store expansion programme, following the opening in Aberdeen last month, with Warrington and Doncaster also opening just about now. This will be followed up with two further openings in Rotherham and Wrexham later this year. And the company’s Merry Hill store will be trebled in size.

HSBC said it will “also provide Footasylum with the financial support to explore international acquisition opportunities”.

And it will enable the business to enhance its technology capabilities, with the further development of the new modular, mobile-first omnichannel retail solution. 

It will also support the development of Footasylum’s key exclusive brands, including Zavetti Canada, Alessandro Zavetti, and Monterrain.

The cash includes a Sustainability Improvement Loan (SIL) too, which links the cost of borrowing to its sustainability performance, monitored using an EcoVadis ESG (Environmental, Social, and Governance) rating. The rating will be tested on an annual basis to track the ESG performance. If the company improves its sustainability rating in line with pre-agreed targets, it could benefit from reduced interest rates on the loan.

That’s a massive incentive, of course, and the firm has committed to achieve a carbon net zero target for scope 1 and 2 emissions by 2030 and Scope 3 by 2040. It began offsetting its carbon emissions in 2020 and plans to have a fully electric or hybrid fleet by 2025, with 70% of logistics journeys already powered by biodiesel. Its carrier bags are also made from 100% recycled material and the company is committed to a Make it Wild environmental tree planting partnership.

The retailer’s 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.”