Morrisons has applied for planning permission to demolish the derelict Bolsover District Council offices which it bought in 2014.
The news comes after the council issued a community protection notice last week demanding that the superstore clean up the site, which has fallen into disrepair and been the subject of repeated acts of vandalism and fires.
Bolsover District Council told Derbyshire Times Morrisons now had 28 days to complete the work detailed on the notice.
A spokesman said: “If they fail to do this they will face prosecution by the council’s legal department and a potential fine of up to £20,000.”
Councillor John Ritchie, Bolsover District Council’s cabinet member for community safety, said: “The site is an eyesore and dangerous. We’ve had vandalism and fires and it is now a magnet in attracting anti-social behaviour, so something has to be done – and soon.
“We want the company to make it safe and then put plans forward for it to be developed for the benefit of the town as soon as possible.”
Morrisons originally bought the former Sherwood Lodge council office site from Bolsover District Council with view to develop a 20,000sq ft store with a petrol station.
But speculation about the site’s future, compounded by delays with the development and by Morrisons’ repeated failure to comment on the plans was finally confirmed when the council learned it had been put up for up for sale in June 2015.
A Morrisons spokesman said: “We are aware of recent incidents at the Sherwood Lodge site and are taking steps to increase security and deter further antisocial behaviour.
“We have asked Bolsover District Council for permission to demolish buildings within the site. This will significantly clear up the site and reduce the risk of it becoming a target in the future.”