A £2 million facelift of Birmingham's Summer Row has been put on ice amid fears 100 jobs could be at risk due to the massive Paradise Circus redevelopment.
Bosses at Summer Row owner Town and Country Inns said the area had been turned into an "unappealing construction site," causing takings to plunge by 25 per cent.
It claims diversions, suspended parking bays and demolition work was having a "massively negative impact" on trade in the area, with high-profile bars such as Apres, Mechu and Fleet Street Kitchen all hit.
The work, which is being carried out as part of the wider £500 million office-led Paradise development, will see the Paradise Circus island re-routed and new traffic flows put in place.
Temporary restrictions and diversions of bus routes are now in force and due to last until summer 2016 (see gallery below for map).
Plans for a £2 million refurbishment of Summer Row have now been put on hold amid concerns for the short- and long-term future of the area.
Town & Country Inns employ 250 full- and part-time staff throughout the company, with more than 100 of those staff based in Summer Row.
Keith Williams, of Town and Country Inns, said: "There is no doubt that the Paradise Circus development will be hugely positive for Birmingham.
"However, the council needs to urgently address the negative impact on local businesses.
"Double yellow lines have now been painted on the road along Summer Row restricting drop-offs and deliveries and from the February 9 the road will be totally closed with no access to Fleet Street from Summer Row.
"We are urging the council to step in and provide assistance and support to us now and not in several years' time when it's too late.
"We have invested over £10 million of private capital restoring and transforming the Summer Row area. Without the council's support, we are fearful for Summer Row's future."
A Paradise Circus spokesperson said the work would enhance the area but unfortunately some disruption was inevitable.
He added: "Every effort is being made to keep this to a minimum. As part of the planning process for the Paradise development, a number of comprehensive and well publicised public consultations were held.
"A series of meetings have been held over the last few months with the scheme's immediate neighbours, including Town & Country Inns and further meetings are already planned."