Owners of Fitzmaurice Street's iconic Knights Meats & Deli say they are beginning to seek legal advice to save the business from going under.
It follows the closure of the adjacent carpark since December as works continue on the main city levee.
The carpark is on track to re-open after Easter, but with 25 per cent fewer spots.
"Once everything's done, we've been told we'll have 19 available spots and two for disabled. We've been told it can't be made any bigger," said manager Deanna McNaughton.
Prior to the closure, there were 28 available parking spots.
Furthermore, the owners say they have recently been informed of the possibility that in April, up to five parking spots will be temporarily taken to accommodate landscaping works on the former Hampton Bridge site.
"We've been told it will be about six weeks after the carpark has re-opened, that they will be out of action," said Ms McNaughton.
Since the carpark's closure, the butcher has added another trading day, in the hopes of bringing more foot traffic into the store.
"We're trading seven days now, and have been since December," said Ms McNaughton.
"That means extra costs for wages and so forth, and we're still not reaching the same margins as we were last year when we were open six days a week."
Even still, they say they have been registering a loss in sales to the tune of 20-30 per cent since December, forcing management to seriously consider permanently closing the iconic 45-year-old butcher.
"It's still a tragic situation whichever way you look at it really," said Ms McNaugton.
"We're a large business and we employ a lot of people. If we have to close, there are going to be ripples throughout the community."
In a statement provided by council last month, a spokesperson indicated that consultation with affected businesses, including Knights Meats & Deli would be ongoing throughout the levee bank process.
A new carpark will be constructed to upgrade the existing three-decade-old carpark. It will also provide universal access to the Wiradjuri Walking Track along the levee bank.
"Council is working closely with businesses and residents to ensure car parking availability is maintained and inconvenience is minimised," the statement read.