Footasylum bags £35m credit facility to fund UK growth ambitions

The footwear and sportswear retailer has secured a £35m revolving credit facility (RCF) from HSBC UK as it looks to expand its foothold in the country.

The funding package includes a sustainability improvement loan, which links the cost of borrowing to Footasylum’s sustainability performance, including a reduction in interest rates if the retailer improves its sustainability rating in line with pre-agreed targets.

The RCF will be used to roll out a store expansion programme, starting with openings in Aberdeen, Warrington and Doncaster, followed by stores in Rotherham and Wrexham later this year. Meanwhile, the company’s Merry Hill store will triple in size.

The retailer said the funding would also provide Footasylum with financial support to explore international acquisition opportunities.

Footasylum chief financial officer 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.

“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.”