Footasylum just secured a new funding package to help expand its presence across the UK.
The Aurelius-owned shoe chain on Monday announced that it nabbed a 35 million pound Revolving Credit Facility (RCF) from HSBC UK, which will help power the chain’s store expansion program, technology enhancements, influencer partnerships and owned brands development while driving potential acquisition opportunities.
The funding also includes a Sustainability Improvement Loan (SIL) that links Footasylum‘s environmental progress to the cost of borrowing and monitors the its ESG performance annually. In other words, the better the chain does in terms of sustainability progress, the more favorable its interest rates could become.
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“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. “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.”
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As part of its store expansion, Footasylum opened a new 20,000 sq.-ft. flagship store on London’s Oxford Street last September and has opened several other large stores since last fall.
Looking ahead, the chain plans to open more locations in across the UK while tripling the size of its store in Merry Hill, England. These expansions are projected to generate more than 100 new jobs across the UK.
The new funding will also support the developments of Footasylum’s own brands such as Zavetti Canada, Alessandro Zavetti and Monterrain, which the chain sells in addition to popular third party brands like Nike and Adidas. Footasylum also recently started using a mobile-first omnichannel tool to help guide the customer journey, which the new RCF will bolster as well.
“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. “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.
Footaslyum, which started offsetting carbon emissions in 2020, committed to achieve a carbon net zero target for scope 1 and 2 emissions by 2030, with a target Scope 3 target by 2040. The chain also uses 100 percent recycled material in its carrier bags and is also aiming for its fleet to be entirely electric or hybrid by 2025.
JD Sports Fashion Plc previously owned Footasylum and sold the chain to German asset management firm Aurelius for 37.5 million pounds in August of 2022. In March, Footasylum named David Pujolar as chief executive officer. He previously served in leadership roles at AW Lab, Adidas, Foot Locker and Tommy Hilfiger.
Last month, Footasylum reported that revenue for the year that ended on Jan. 24, 2024 was up 7 percent to 319.5 million pounds, ahead of the 297.9 million pounds the year prior. By channel, online sales were up 15 percent to 134.9 million pounds and wholesale sales were up 87 percent to 16.8 million pounds, driven by the chain’s portfolio of brands that have spurred international growth. Online sales now make up 42.2 percent of all sales.
On social media, Footasylum’s following grew by 1.4 million to 5.8 million total followers, driven by the chain’s fourth Locked In reality series that reached 37 million views and saw over two billion impressions across all platforms.
“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,” said Tobias Klaiber, managing director at Aurelius operations advisory, in a statement. “The HSBC Sustainability Improvement Loan will enable Footasylum to further drive its ESG initiatives, and reflects its commitment to be an accountable sustainability leader.”