Council leaders in Cannock, Staffordshire, have accused Asda of "neglecting" a play area it was meant to maintain.
The deal to build a new 24-hour supermarket was agreed between the company and Cannock Chase Council and it specified that a community space would be created and maintained on the opposite side of the road to the site.
However, leaders of the authority have now claimed that Asda has not stuck to these promises.
The latest fallout comes amidst a dispute between the two to decide who should keep the £500,000 earmarked for an artificial pitch at Cannock Stadium. The site was demolished in 2009 and Asda claims that the council should have spent the money by May 2011.
Tony Williams, Hagley ward councillor, told the Express and Star: "Asda are still failing to maintain the area in accordance with the conditions. They need to ensure the paths are kept clear, and keep checks on all the equipment to see that it’s safe, it's general health and safety concerns."
Asda, part of the US company Walmart, is an ever-present in British towns with 500 stores nationwide.
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