The row is over cash said to be owed to MEP according to the terms of its acquisition of MFI’s retail business two years ago.
MEP has reduced its gross claim from£57 million to£52.9 million and agreed offsetting items should be considered.
Galiform disclosed the change in stance on Wednesday, when it also revealed it would be liable for rents totalling£15.5 million a year if MFI suffered “financial distress” and defaulted.
Blue Oar analyst Ian Macdougall said: “Were MFI Retail to go under, some 46 of its leases would revert to Galiform.”
However, Galiform said it was “not aware that the purchaser or its subsidiaries is in financial distress”.
The collapse of furniture specialists such as Floors-2-Go and demise of others such as General Trading Company have made Galiform investors nervous about the company’s MFI liabilities.
Dresdner Kleinwort’s Geoff Lowery said: “MFI should be relatively well funded given the£200 million injections since 2006.”
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