Footasylum secures £35m funding package from HSBC to fuel expansion
Footasylum has secured a £35 million Revolving Credit Facility (RCF) from HSBC to accelerate its retail growth plans across the UK and boost its sustainability initiatives.
Footasylum was acquired by AURELIUS, a global alternative investor, in August 2022. Since then, the company has embarked on a strategic store opening and upsizing programme that has seen it open a flagship 20,000 sq ft store at 73-89 Oxford Street in London.
Other recent UK openings include a new store at Union Square shopping centre in Aberdeen last month, and store openings this month will include Golden Square shopping centre in Warrington and Frenchgate shopping centre in Doncaster (which was recently acquired by Frasers Group).
They will be followed up with two further openings in Rotherham and Wrexham later this year, while Footasylum’s Merry Hill shopping centre store in the West Midlands is trebling in size.
The expansion plans are expected to create over 100 new jobs, including in management, full-time and part-time in-store positions across the UK.
HSBC UK’s funding will also provide Footasylum with the financial support to explore international acquisition opportunities, enhance its technology capabilities and support the development of its key exclusive brands, including Zavetti Canada, Alessandro Zavetti and Monterrain.
The HSBC UK RCF funding package includes a Sustainability Improvement Loan (SIL), which links the cost of borrowing to Footasylum’s sustainability performance, monitored using an EcoVadis ESG (Environmental, Social, and Governance) rating.
Nick Scott, Chief Financial Officer at Footasylum, 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.
"We’re hugely excited about the opportunities ahead and the positive impact these plans will have on both our business and the communities we serve."
Tobias Klaiber, Managing Director at AURELIUS Operations Advisory, added: "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.”
With over 61 stores nationwide, Footasylum recently achieved "record breaking results" with revenues of £319.5 million for the year to 27 January 2024, up from £298 million in the previous financial year.
During the period, Footasylum’s profit before tax rose 112%, supported by strong performances in its online and wholesale divisions.