A campaign against a developer's bid to get the Island's Morrisons plan overturned is gaining momentum.

Residents Paula Garrett and Chris Packman are furious potential High Court action could scupper Sheppey's chances of a new supermarket and are encouraging Islanders to sign a petition to stop it.

Meanwhile, bosses behind the Queenborough development have revealed which chainstores want to set up shops there.

Citygrove, the company which wants to develop the former HBC Engineering site in Halfway, has lodged a legal challenge against LXB Retail Properties' £25million plans for Neats Court.

Work on the site was weeks away when the bid was entered.

Citygrove, which had hoped to get a Sainsbury's store at the Power Station Road site before the firm pulled out, claims Neats Court should be used to create more skilled employment.

The campaigners have raised their concerns with the chairman of Citygrove, Toby Baines.

Mrs Garrett said: "Mr Baines said he will do the right thing for the people of Sheppey but for us that is to stop the High Court action and let the Neats Court development proceed."

Hundreds of Islanders have signed a petition to get a potential High Court action over the Morrisons plan for Neats Court overturned.

Paula Garrett and Chris Packman started their campaign in response to a bid by Citygrove, the company which wants to develop the former HBC Engineering site in Halfway, against LXB Retail Properties' £25m transformation of the Queenborough site.

Mrs Garrett and Mr Packman have been in touch with the chairman of Citygrove, Toby Baines, to voice their disgust.

They say that to the people of Sheppey Neats Court is by far the better option for a development as they want everything it is bringing to the table and not just a supermarket.

Mrs Garrett said: "We've had quite a lot of interest in the petition because of the amount of people that want Morrisons to come.

"If you want Morrisons please support us by signing the petition."

However, Mr Baines has said that Citygrove has a contractual obligation to try and get a food store at the Power Station Road site.

He said: "Whether we like it or not we have got a contract and it means we have got to do specific things which include trying to get planning permission for a retail store.

"It says legally that we have to try and do whatever is deemed necessary that the site gets purchased for a food store.

"We believe that if we were the only party with planning consent on the Island then Morrisons would have come here [to Halfway] and we could potentially quash [Neats Court] planning consent at the judicial review.

"They [Islanders] are not going to miss out – there will be a new food store."

Mr Baines has also revealed he would "walk away" from the High Court bid and buy his way out of Citygrove's contract if LXB would agree to provide some industrial units for skilled employment opportunities.

"Neats Court should always have been a primary industrial site so if LXB wants us to walk away - that's what they need to do," he added.

"If the food store goes to Power Station Road and the Rushenden Relief Road attracts skilled jobs to the Island, surely that's a win-win."

Giles Haywood from LXB said they were overwhelmed by the public support for their plan and strength of feelings against the High Court action.

He said that despite Citygrove's "delaying tactics" and the subdued economic climate there had been a lot of interest in businesses taking space at Neats Court.

Although B&Q has not been officially signed yet, Mr Haywood said there were continuing talks and the DIY firm was still keen.

Footwear retailer Brantano and home furnishings shop B&M Stores have also shown interest.

These would be in addition to a KFC drive-through and family pub.

He added: "We are confident once we eventually get on site to start Morrisons, there will be even further interest going forward.

"LXB, Swale council and Morrisons made their responses to the High Court claim in the first week in May.

"The first stage is the Administrative Court where a judge will consider whether or not to give Citygrove permission to go the High Court.

"This is likely to be heard sometime in June."

• Sign the petition online at www.petitiononline.co.uk and search for Citygrove, or visit the Times Guardian office.