The MFI leases that reverted back to former parent company Galiform when the furniture retailer collapsed last year have cost it nearly £100m.

Building supplies group Galiform was hit by an exceptional charge of£108.8m in the 52 weeks to December 27, of which£99.7m related to rent and other obligations payable on properties that had been occupied by MFI.

Galiform – formerly known as MFI Furniture Group – sold the MFI retail business to private equity group Merchant Equity Partners in 2006.

When MFI fell into administration last year, Galiform was left as guarantor for rent and costs at 46 MFI properties.

Galiform’s profit before tax and exceptional items fell from£79.8m to£74.3m in the period.

In a statement the company said: “The overall financial results for 2008 reflect the continued cost to the group of MFI legacy issues.”

Galiform chief executive Matthew Ingle said: “In 2008, we took early and decisive action to begin to deal with the MFI guaranteed property issue, and the costs of this are reflected in our reported performance.

"We are working to resolve the outstanding legacy issues and, meanwhile, other actions we have taken have improved our underlying operations and mean we are better placed to manage the business through 2009 and beyond.”

MFI collapsed in November for the second time in two months. It blamed the poor market, withdrawal of credit insurance and the failure of key suppliers for its demise.