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A city chippy could find itself at the centre of a David and Goliath-style battle with hotshot Los Angeles lawyers.

The Lobster Pot has been putting tables, chairs and bins outside its Whitechapel restaurant without permission and is now being forced to apply for a permit.

But the ECHO has learned that its new neighbour, superstore Forever 21, is opposed to the chippy being given the go-ahead because of the litter and smells wafting towards its flagship store.

It is understood that the store’s management has been in touch with the company’s head office in Los Angeles and the firm’s lawyers are now briefed up on the situation which includes a bid by the Lobster Pot to put seating in the alleyway between the two buildings.

It is believed the $1bn-turnover company could put in an objection to the famous family-run fishbar’s attempts to get a permit.

City councillors are also opposing the application and say they believe the seating could end up as a magnet for rubbish and anti-social behaviour.

But the Lobster Pot’s owners said they believed the whole situation had been blown out of proportion.

Owner Theoulla Haralambous told the ECHO: “It will be far away from them anyway and we were here first.

“Our business suffered for two years while they were building the store, there were big boards up and it overshadowed the shop.”

It is believed Forever 21 – which has stores across the USA, Europe and Asia, has also made complaints about the clothing market stall that sits in the middle of Whitechapel.

City Central ward councillor Nick Small said he was opposed to the Lobster Pot’s plans.

He added: “When I walked past the other day there was a massive bin overflowing outside and they’re not supposed to have a bin anyway. These pavement licences were brought in for restaurants and bars.

“This could be a magnet for anti-social behaviour.

“When people are coming through town shopping over Christmas and there’s people hanging around outside the chippy at four and five o’clock in the afternoon, it’s going to put people off.”

City licensing expert Karl Barry said it would make sense to grant the licence, adding: “You’ve got to give people a chance, put conditions in if needs be, but don’t use a sledgehammer to crack an egg.”

A spokesman for Royal London Asset Management, which built the superstore, said: “We are interested to learn that the situation between Forever 21 and the Lobster Pot has arisen.

“We are sure Liverpool city council will work together with Forever 21 and the Lobster Pot to come to a satisfactory resolution.”

No-one from Forever 21’s US headquarters could be reached for comment.