HAVERFORDWEST’S Homebase store has been saved from a 42-strong cull of stores in the UK and Ireland.

Yesterday, HHGL Limited (Homebase) announced the next phase of its restructuring plan.

The company is to launch a Company Voluntary Arrangement (CVA) and is seeking approval from creditors on a proposed plan to reduce its cost base in the UK.

Only one store in Wales, at Newport Road, Cardiff, has been identified, with Haverfordwest’s Springfield Retail Park store, on the Fishguard Road, saved.

Homebase’s sales performance and profitability declined significantly under the previous ownership over the last two years. In addition, the company has faced an extremely challenging retail trading environment.

Homebase has concluded that its current store portfolio mix is no longer viable. Rental costs associated with stores are unsustainable and many stores are loss making.

Under the terms of the CVA proposal, all creditors receive a better outcome than any other likely alternative.

It is anticipated that 42 stores will close during late 2018 and early 2019.

It is expected to lead to a loss of up to 1,500 jobs, although every effort will be made to redeploy team members within the business.

All stores in the UK and the Republic of Ireland will remain open for business as usual.

The creditors will vote on the CVA on August 31.

Damian McGloughlin, CEO of Homebase, said: “Launching a CVA has been a difficult decision and one that we have not taken lightly. Homebase has been one of the most recognisable retail brands for almost 40 years, but the reality is we need to continue to take decisive action to address the underperformance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs. The CVA is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead.”