Footasylum, the Aurelius-owned footwear chain, has secured a £35 million ($45.7 million) Revolving Credit Facility (RCF) from HSBC UK to drive its expansion across the UK. The funding will support store openings, technology upgrades, influencer partnerships, and the development of Footasylum’s exclusive brands, while also providing potential for acquisitions.
The package includes a Sustainability Improvement Loan (SIL), which links Footasylum’s environmental progress to its borrowing costs, rewarding the retailer with favorable interest rates as it improves its sustainability performance.
“This funding from HSBC UK is a key milestone in our growth journey and will help us achieve our ambitious Environmental Policy,” Footasylum chief financial officer Nick Scott said in a statement.
He added, “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.”
Footasylum has already opened a flagship store on London’s Oxford Street and plans further store expansions across the UK, including tripling the size of its Merry Hill store, creating over 100 new jobs. The funding will also help advance Footasylum’s own brands, such as Zavetti Canada and Monterrain, and bolster its mobile-first omnichannel tool for enhancing customer experiences.
“We are pleased to support a leading omnichannel retailer such as Footasylum in its next phase of growth,” Zubayr Atcha, global relationship director, corporate banking for HSBC UK, said in a statement, adding, “This funding will provide the flexibility needed to drive expansion plans, support their sustainability strategy and further establish the retailer’s presence in the fast-growing street and sportswear market.”
Footasylum, which started offsetting carbon emissions in 2020, aims to achieve carbon net zero for scope 1 and 2 emissions by 2030, with a scope 3 target by 2040. The retailer also plans for its fleet to be fully electric or hybrid by 2025.
Footasylum, acquired by Aurelius for £37.5 million in 2022, has seen strong growth, with revenue rising 7% to £319.5 million for the year ending January 24, 2024. Online sales increased by 15% to £134.9 million, and the brand’s popular “Locked In” reality series contributed to a social media following of 5.8 million.
“The journey of Footasylum continues to be exceptional. 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,” said Tobias Klaiber, managing director at Aurelius operations advisory, in a statement.
