Major retailers including Homesbase and Argos were dealing with the PR fallout after a judge ordered them to pay £20m in compensation after chemicals in their sofas burned customers

It is estimated that up to 100,000 sofas were sold through the stores – and the now defunct Land of Leather – which treated with mould resistant chemicals that in actual fact produced a caustic gas that burned the skin of those who used them.

It is claimed two people may have lost their lives as a result, and several others have suffered permanent scars and injuries.

The sofas where manufactured in China where anti-fungal sachets of dimethyl fumarate were inserted.

 When the problem caused by this chemical first came to light some of the companies did contact customers about a health and safety issue, but were not explicit about the specific problem. However, when customers did complain they were offered a refund or replacement.

PR experts say because of the magnitude of the issue retailers could have found themselves in a difficult position. An early admission of liability may have negated insurance policies which will now pay for the bulk of the compensation claims; which will be around £9,000 per claimant.

Land of Leather, for various reasons, breached the terms of its policy, so its former customers will get nothing.

After the ruling a spokeswoman for Argos apologised to any customers who may have been affected by skin irritations linked to sofas manufactured by Chinese-supplier Linkwise.

“We are pleased that the court has granted the Group Litigation Order today, which will help with the management and speedy resolution of the claims,” she said.