A man walking in Peacehaven was threatened by a group of men, one of whom was wielding a baseball bat.
At about 1.10pm on Saturday 5 April several men were seen to get out of two cars, one of which was a white Range Rover, in South Coast Road, Peacehaven, near Subway.
The driver of the Range Rover and one of the other men held a baseball bat with which he threatened a man walking in the street.
However no blows were actually seen to be struck and the suspects fled the scene. Police swiftly arrived and stopped the Range Rover in a nearby road.
They arrested two men on suspicion of affray and possession of an offensive weapon. A baseball bat was found in the vehicle.
The men, one aged 39 and from Eastbourne, and the second aged 28 and from Perivale, West London, have both been bailed until 8 May while enquiries continue.
The man who was approached was spoken to by police and was unhurt.
Sussex Police said it was carried out by people known to each other.
PC Lucy Reynolds said:"To help us establish the full circumstances of this incident, anyone who saw what happened is asked to call us via 101 or email email@example.com quoting serial 0708 of 5/4. You can also call the independent charity Crimestoppers on 0800 555 111."