Frankton's largest retailer, Forlongs, is challenging the Hamilton City Council over the closure of a road for the suburb's 23-year-old weekend market.
The challenge could almost halve the number of weekends the market operates, or force it to change to operating on Sundays.
Forlongs owner Terry Forlong has sought legal advice on the closure of Commerce St for 4 hours over 51 Saturdays for the market.
By law, the road can be closed for only 31 days a year, but the council found a loophole allowing it to be shut for the market on all but one Saturday a year because the closure was for only half a day.
After a meeting with the council yesterday, Mr Forlong said he hoped a middle ground could be found.