Businessman Alan Butler is considering mounting a legal challenge to a decision refusing him permission to open a sex shop.

Mr Butler wanted to open a shop selling sex aids and underwear in Queen Street, Horsham.

His application was refused unanimously by Horsham district councillors, who considered the premises were inappropriate for a sex shop because they were in a residential area.

Mr Butler, who lives in Kent, said he was disappointed by the decision.

He said: "In discussions with council officials before the application was made, I got the impression this was one of the few areas it was worthwhile considering. They wanted me outside the town centre on a main road."

Mr Butler, who runs a chain of eight sex shops called Pillow Talk in the South-East, said he chose Horsham because he wanted to move away from the London area.

He said he was having talks with his solicitor to consider a judicial review which would challenge the council's decision in the courts.

His other option was to consider opening an unlicensed sex shop in the town centre or at the premises in Queen Street.

Where premises are licensed, local authorities have greater supervisory powers but the shop can carry a wider stock. With unlicensed premises there are more restrictions on stock and the way it is displayed.

Mr Butler said he wanted to sell sex aids, magazines, videos, lingerie, evening dresses, club wear and stag and hen-night novelties.

During public consultation the council received 222 letters of objection.

Most were from residents living near Queen Street and from parents whose children would regularly pass the proposed shop.