VANCOUVER – BC Supreme Court has slapped Vancouver retail store the Fantasy Factory with a reality check, ordering it to close shop because it doesn’t have the proper license to sell sex paraphernalia.

The previous owners had been renting videos before the store was transformed by a new owner into an adult entertainment shop in 2009.

Complaints by neighbours led to an inspection by the city, which concluded that not only did the Fantasy Factory not have the right development permit, the store was also considered inappropriate in the area.

The city ordered owner Tony Perry to close the shop, but he disputed the decision, arguing similar stores in Vancouver also operate without the proper license and haven’t been penalized.

Perry says the city was discriminating against his store, which sold adult videos, sex toys and coin-operated “peep shows.”

But BC Supreme Court Judge Peter Voith ruled in the city’s favour, saying Perry had violated the city’s bylaws and needs to shut down his store within 90 days.