The Rococo Lounge has suffered a 60 per cent loss in takings, which it blames on a controversial council decision to only allow buses on Broad Street on Friday and Saturday nights.

The bar, formerly Bar 2 Sixty, reopened in November after a £200,000 refit, and administrators are hopeful that a new investor can be found by April with at least £500,000 to pump into the business.

A spokesman for the administrators said the company may not be in administration if the vehicle restrictions had not been put in place.

Businesses have been going bust in Broad Street for a number of years Councillor Stewart Stacey

City councillors were told earlier this week that the three-month experiment, which was introduced last month, would run its course.

Councillor Stewart Stacey, cabinet spokesman for transportation, denied that the scheme was to blame for the bar's financial difficulties.

"It is always very sad when a business goes into administration, but businesses have been going bust in Broad Street for a number of years," said Councillor Stacey.

New clients

The traffic ban was introduced by the council in a bid to improve safety for clubbers, and help tackle crime issues.

Councillor Stacey added: "There are new clients coming to Broad Street that wouldn't have come before.

"We are now getting more women, who say they feel safer, so businesses will have to adapt."

Councillors will decide later in the year if the temporary ban will become permanent.