MORE than 300 customers who bought ’toxic’ sofas which they claim left them with rashes and burns will not receive compensation.

The consumers took Land of Leather to the High Court after they were exposed to the chemical dimethyl fumerate in sofas they had purchased from the company.

The defunct firm, along with other retailers including Argos, are alleged to have sold furniture made by Chinese Linkwise, which caused the skin problems.

Sachets of anti-mould fungicide stapled inside the furniture are claimed to have caused the problems.

But Mr Justice Teare, sitting at the High Court in London, ruled the group of claimants were not entitled to compensation from Zurich Insurance, Land of Leather’s insurers.

Claimants include included Linda Gledhill, of Scholes, who developed rashes on her skin.

EU manufacturers were already banned from using dimethyl fumerate.

It has since been banned from use in imported products after consumers in at least five EU countries suffered skin burns and breathing problems, the solicitors said.

Lawyer Richard Langton described the ruling as a “devastating blow” as his clients had believed Zurich were going to pay out.

The case continues for the remaining hundreds of customers.