Pahls Off-Licence, in Ryhope, could lose the right to sell beer, wines and spirits after police applied to Sunderland Council to revoke its licence.
Officers say the shop in Wraith Terrace is a magnet for under-age drinkers and yobs intent on causing trouble.
In the last year police say there have been 280 reports of incidents of disorder, while from the 51 people they have stopped in the street there have been 41 seizures of alcohol.
Lakhbir Sihngh Pahl owns the shop and last year was fined after being caught selling alcohol to a 16-year-old customer.
Now residents claim Pahls is "responsible for the availability to young people within the area", which they think is the main reason for disorder blighting their community.
Mr Pahl will go before the licensing committee at Sunderland Council this week to face Community Police Officers who are applying to have his licence revoked.
Sergeant Graham Lockey, acting inspector for Sunderland West, said the shop has been the cause of antisocial behaviour problems for a long time.
He said: "The application that we have made is because of the level of disorder in the immediate area of that premises, particularly Wraith Terrace and Bevan Avenue.
"The steps we are taking is to try and reduce the amount of alcohol available in the area in order to improve the quality of life for local residents.
"This has been a problem for over year or so and this is one of the tactics we have employed to improve the area."
In a survey carried out by Sunderland Housing Group, 56 per cent of residents said yobs hanging around Pahls was a "major problem" and almost a third said there was major problems in the area as a direct result of alcohol being supplied from the off-licence.
Sgt Lockey says Northumbria Police are applying for the shop to have its licence revoked permanently, in their bid to improve the area.
He said: "The revocation is what our application is all about but how long it will be revoked for depends on how the licensing committee views the application.
"My application would certainly be for a permanent revocation, but that decision is in the hands of the committee."
Pahls will go before the Licensing Committee on Thursday to argue against the application in a bid to keep its licence.
No one at the store was available for comment.