Footasylum secures 35 million pound funding to support growth plans

Footwear retailer Footasylum has announced that it has secured a 35 million pound Revolving Credit Facility (RCF) from banking firm HSBC UK which it will use to help accelerate its growth plans across the UK and international markets.

The retailer, which was acquired by investor Aurelius in August 2022, revealed that the RCF funding package included a Sustainability Improvement Loan (SIL) that links the cost of borrowing to the company’s sustainability performance.

This will be monitored using an EcoVadis ESG rating and could mean that the company would benefit from reduced interest rates if it improves its sustainability rating.

Elsewhere, Footasylum said the funding would be used to roll out a store expansion programme, building on a strategy that had already been in place focused on upsizing and opening new locations.

Now, however, Footasylum has revealed a new store in Aberdeen, opened in September, as well as further sites in Warrington and Doncaster to open in October and two more locations in Rotherham and Wrexham planned for later this year.

In addition to this, the funding will go into supporting the exploration of international acquisition opportunities, Footasylum noted in a release.

There will also be an update to the company’s technology capabilities, including the development of a mobile-first omnichannel retail solution, as well as developments into its key brands, including Zavetti Canada, Alessandro Zavetti and Monterrain.

In a statement, chief financial officer of Footasylum, 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.”