HOPES of a new Asda coming to Cinderford have been dealt a blow.
Supporters of a new store moving onto land at Steam Mills Road said they were "gobsmacked" after a legal challenge by rivals The Co-op was given the go-ahead by a High Court judge.
It will now go to a full judicial review in a few months, which has the power to overturn the planning permission granted by Forest of Dean District Council more than a year ago.
Hundreds of people in Cinderford are desperate for Asda to come to the town and staged marches through the centre to show their support, although it was not universally popular.
A Facebook campaign called No Asda for Cinderford also started up amid fears small independent traders would lose business.
One of the pro-Asda campaigners, Amanda Watkins, said: "I've had loads of phone calls from the campaigners already and the feeling is that everybody is just gobsmacked by it."
The Co-op, which has a store in Dockham Road in the town and currently only competes with Lidl with custom there, had to show at the High Court that it had an "arguable case".
The judge agreed it did and has given the go-ahead for a full judicial review.
Mrs Watkins added: "We are still optimistic Asda will come to Cinderford, I think it's just stalling tactics from The Co-op. People want the choice, they want good value and parents in particular want it for kids clothing."
Part of the agreement contained in the planning permission was that Asda would pump cash into Cinderford's wider regeneration scheme.
Town mayor Max Coborn said: "It's a bit of a shame because we need the competition in the town - and the jobs, that's the most important thing. Hopefully it will still happen but you can't count your chickens."
Oliver Jones, senior property communications manager for Asda, said: "We, like many local residents, are sorely disappointed with this decision.
"We are however absolutely committed to delivering a store in Cinderford and look forward to working with the local community in the meantime."
Marie Rosenthal, the district council's solicitor, added: "To get approval today all the Co-op needed to show was they had an arguable case. We will be robustly contesting their legal challenge at the full hearing."
