Purchased a sofa from Land of Leather, when it was delivered, the delivery people noticed several damaged areas on it.

LoL said they would give us a replacement, they then went bust. Administrators wrote to me to say they would not replace sofa. I claimed from my credit card and got a full refund.

LoL wrote to say order now cancelled as refund given.

Lol then sent me a card to tell me to travel to their wharehouse about 90 miles away and collect at my expense, new sofa that was now in stock.

Now LoL have written to say, return original faulty sofa back to them. (I guess so that they can try to sell it again.)

My question is; as credit card company have now paid out on this, does it not belong to them, or their insurance company?

I am refusing to return sofa at my expense to LoL.

You should ask you credit card company what you should do. I agree that you should not have to arrange the shipping but it is possible that the credit card company simply took money from the Land of Leather/Administratotr's account and paid it to you. In this case, the sofa does belong to the store but you should ask them to arrange collection.

Update; after several emails and phone calls to/from credit card company. The sofa belongs to them, not Land of Leather, and have told us that we can keep it.