Outdoor retailer Alpkit has received a £2.7 million funding package from HSBC UK, backed by UK Export Finance (UKEF), to support its international growth.
Alpkit will use the funding to purchase more stock to meet an increase in demand as well as for the development of a new footwear range set to launch this summer. Since the pandemic, demand in the sector has been increasing, with Alpkit seeing particular growth in its sales across cycling, outdoor swimming and technical outdoor clothing.
The company, which has eight sites in key locations across the UK, is also seeing demand increasing from international markets across Europe and the US. Alpkit plans to continue to grow its physical presence with the opening of new UK stores, as well as expanding its product ranges and digital trading capability worldwide.
The funding package from HSBC UK includes a £2 million General Export Facility (GEF) backed by UKEF, the government's export credit agency. The scheme, which launched last December, has already provided over £275 million for businesses across the UK, and can be used by firms to help cover everyday costs linked to exporting and to scale up their business operations.
David Hanney, Chief Executive at Alpkit, said:
This deal will help accelerate our growth as we look to capitalise on a significant increase in demand domestically and internationally. It also means we can invest in innovation to create lower impact, long-lasting technical outdoor gear that is both repairable and recyclable.
HSBC UK has stood side by side with us, providing support through the good and the challenging times. Our Relationship Manager at the bank, Anthony Greenfield, has been a constant source of support and reassurance which has been immensely valuable.
Paul Armstrong, HSBC UK Area Director for East Midlands, added:
With the outdoor retail sector continuing to see substantial growth, Alpkit has moved swiftly to increase its offering across not only the UK but also international markets. We are delighted to work with UKEF to provide continued support as the business grows from strength to strength.
Andy Mannix, UKEF Export Finance Manager, added:
The accessibility, flexibility, and certainty of our GEF is a game-changer for companies like Alpkit. We have recently more than doubled the amount that HSBC can automatically administer to an exporter through its facilities to £5 million, and I am delighted our close partnership has helped make this deal happen.
Alpkit donates one per cent of all turnover to the Alpkit Foundation, a charitable organisation set up by the Alpkit founders to support grass-roots and direct action projects to remove the barriers in getting outdoors and experiencing wild places. The charity has supported over 1,500 projects and donated over £450k to date.
