to death, it was claimed yesterday.

Enterprise Grocery store in Baileys Bay closed last year after its manager retired, wearied by the fight against rummies who loitered near the building and harrassed residents.

An attempt by MarketPlace Supermarkets to take over the store was stalled when the Liquor Licensing Authority revoked its licence -on the grounds that alcohol on the shelves attracted the rummies.

Yesterday the company's appeal against the decision was heard in Supreme Court by Puisne Judge the Hon. Mr. Justice Ground.

Mr. Michael Mello, lawyer for MarketPlace, told him the authority's decision could mean a death sentence on the North Shore store.

Without a licence the store would make 25 percent less profit, and might not be able to stay open, he said.

The court heard there had been problems with a group of undesirables known as the "spruce tree club'', who gathered under trees near the store.

The last in a series of managers, Mr. John Soares, was knifed in the back during a robbery in 1990. The nearby Bermuda Perfumery complained of vandalism and abandoned syringes, while the Grotto Bay Beach hotel alleged guests had been harrassed and property stolen. Police also objected to the store's licence.

But Mr. Mello said problems with the rummies had been exaggerated, and there was no evidence the difficulties would return under new management.

MarketPlace wanted to run a community convenience store with increased security, and had experience of dealing with loiterers.

In any case, he said, the rummies were for Police to deal with.

It was unfair to punish MarketPlace - which had already spent $136,000 improving the property -- for the actions of a few undesirables.

MarketPlace had a 20-year lease drawn up with liquor distributors Burrows Lightbourn, owners of the business. They had the backing of nearby residents, whom they had canvassed.

Mr Mello accused the licensing authority of making mistakes in procedure and coming to an unreasonable decision, since there had been no formal objection to the store having a licence in more than 40 years.

The authority should have given MarketPlace a warning, not revoked the licence "out of the blue''.

He asked Mr. Justice Ground to send the licence application back to the authority with instructions for it to be renewed.

Crown counsel Mr. Mark Pettingill, for the Attorney General, defended the licensing authority's decision. There were exceptional circumstances to the case, because the "menace'' from the rummies had become non-existent since the store closed.

He said most of the objections to the licence had come from nearby residents, while most supporters were from Crawl Hill.

Improved store security was not going to stop the rummies returning, he said.

A renewed liquor licence would attract loiterers "like moths to a flame'', he said.

"People in the area would see the opening of the Enterprise Grocery as a convenience, but their concern about the element drawn in by the sale of liquor certainly outweighs the inconvenience to them of having to travel further down the road to purchase liquor.'' Mr. Justice Ground is expected to make his decision known by Friday.