In October 2009, Knox Council completed the Dorset Square redevelopment, at a cost of $3million.

Works included wider walkways, a new seating area, a revamp of the car parking area and new toilets.

However, traders said the works had failed to attract new businesses. Customers who had left the shopping centre during renovation works had not returned, they said.

Dorset Square clothing shop owner Murray Gibson said the council had not promoted the shopping centre since the renovations.

"There are a few traders which have closed and there will be more that may close."

He said a butcher, a car accessory store and a grocery had closed since the renovations and a gift shop closed during construction. "Apart from that, you've got four or five shops trying to get out of their leases."

In a 2008 media release, then mayor Jim Penna claimed, "Research shows that for every $1 spent on such works, as much as $3 can be expected in economic return".

Dorset Square Traders Association president Karl Thornton said traders were facing a difficult Christmas. "Some people are working other jobs just to keep their businesses going, despite the so-called improvements."

Mr Gibson said while the council had been sympathetic to the concerns of traders - such as parking problems - they had not taken strong action to help solve the problems.

However, the council's city development director, Angelo Kourambas, said the works had been "good news for shoppers, visitors and traders". "We're confident local traders are best placed to market the precinct in a way that draws more trade.

He said problems relating to traffic flow would be fixed this month, with recent wet weather delaying works.