The owner of The Range, Wilko, Homebase and Bathstore has secured a hefty new £190m credit facility to increase investment in stores, artificial intelligence and its supply chain.
CDS Superstores has agreed the asset-based revolving credit facility with Wells Fargo Capital Finance, alongside HSBC and Citi.
The new arrangement is more than double the size of its previous facility and will provide additional working capital to support the retail group’s next stage of growth.
CDS said the funding would be used to invest across its store estate, technology infrastructure, ecommerce operations, customer experience and national supply chain.
The facility is secured against the group’s inventory and has been structured to provide scalable funding for seasonal trading, operational investment and future growth opportunities.
CDS Superstores chief financial officer Jamie Messham said: “This new facility is more than double our previous arrangement and provides significant financial flexibility as we continue investing across every part of the business.”
Chief executive Alex Simpkin added: “Everything we do is focused on giving customers more of what they want, where they want it and when they want it.
“This facility gives us the confidence and flexibility to continue investing at pace while maintaining the value, choice and convenience our customers expect.”
The funding follows a period of rapid expansion for CDS, which acquired the Homebase brand and up to 70 of its stores out of administration in November 2024.
The deal was expected to preserve as many as 1,600 jobs and has underpinned the rollout of The Range’s larger superstore format, incorporating Garden Centre by Homebase, Kitchens by Homebase and Bathstore concessions.
CDS has recently opened stores in Upton and Alnwick and said further new formats and locations were planned.
The Alnwick branch opened at Willowburn Retail Park in July, taking over a former Homebase unit and combining The Range with Wilko and a Garden Centre by Homebase.
The group is investing alongside its physical expansion to bring more of its logistics and digital operations under its control.
CDS has taken its national distribution network in-house and introduced AI-powered forecasting and replenishment technology from Relex across its store and distribution operations. The system is intended to improve product availability and help the retailer respond more quickly to changes in demand.
It has also upgraded The Range’s online marketplace through a partnership with Mirakl, replacing its previous in-house platform with technology designed to support more sellers and a wider online assortment.
The marketplace already accounts for almost half of The Range’s online sales, according to Mirakl.
Further digital investment includes the introduction of Google Cloud’s Vertex AI technology across the group’s ecommerce operations to improve search, product discovery and personalisation.
Wilko.com is using a combination of large language models, CDS’s proprietary data and internally developed systems, with the aim of making online searches more relevant and intuitive.
CDS has also expanded its strategic relationship with Amazon Web Services to strengthen the infrastructure supporting its brands and accelerate the development of new digital services.
Simpkin said the group appreciated Wells Fargo’s support and expertise during the financing process, adding that CDS looked forward to developing the relationship further.
The agreement gives CDS additional headroom at a time when many retailers are limiting discretionary spending in response to higher employment, property and operating costs.
However, the group is continuing to pursue a growth strategy spanning acquisitions, new shops, larger-format stores and ecommerce investment as it seeks to build an integrated multibrand retail business.
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