Furious traders are fighting back after being told they face a rent rise of almost 60 per cent.
More than 200 residents and businesses in Southwick Square, Southwick, have signed a petition that has the backing of Adur Chamber of Trade and Commerce.
They fear the area could become a ghost town if businesses were forced to leave the square because of rent increases.
Adur District Council wants the rise backdated to last June when a rent review should have been completed.
The petition was started on Saturday and organisers hope to amass thousands of names.
Posters have also gone up in almost every shop in the square protesting against the move.
Lib Dem councillor Paul Elgood, who represents Brunswick and Adelaide, said: "We are extremely concerned this will result in the closure of local businesses such as newsagents and the small shops.
"The traders have told us they will not be able to survive if this goes through so they are fighting it hard.
"The response so far is amazing. There has been huge backing for the petition. We have to try to stop this going ahead.
"Just after Christmas we became aware that traders were hanging on by a shoestring and if this went through it could be the final straw for them and some might leave.
"People were coming up to us to sign the petition. They did not need any persuading."
He said the petition would be handed into Adur District Council next month.
Martin King, a former Lib Dem Adur councillor, said: "If the council goes ahead with these increases it may make a short-term profit for the first 18 months to two years but in the long term it will be losing an enormous asset."
Traders in the area already have to compete with six superstores within a five-minute drive.
When the superstores at nearby Holmbush were built, rents were frozen in Southwick Square for five years because the stores would have an impact on trade.
Since then, two shops have been on the market and another two have become charity shops.
Tory council leader Neil Parkin said it was council officers' responsibility to get a good deal for taxpayers.
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