Dave Larsen from Hearthfire Bakery took to Instagram on Wednesday to announce that Bellingen Shire Council had effectively closed them down by erecting signs that would prevent access to their delivery dock and block laneway access from 8am to 4pm each day.

Dismayed and outraged patrons flooded social media with comments and by the end of the day, council had replaced the "No Stopping" signs that had been installed on either side of the bakehouse doorway with "No Parking" signs.

But Dave said the new loading zone signs in the laneway remain a problem.

"The loading zone still blocks the laneway between 8am and 4pm," he said. "It's a hazard. It's a pedestrian shared zone. It doesn't just block access to our delivery dock, it blocks access to the whole area, the carpark and everything."

Multiple businesses, including the Federal Hotel, Hearthfire Bakery, Hammond & Wheatley, IGA, Kombu Wholefoods and the Brewery rely on this space, but their individual and collective rights and responsibilities are mired in decades-old complex legal arrangements that the late Barry Smith entered into with Bellingen Shire Council.

In October 2018, the recurring issue of who should maintain the parking lot bubbled to the surface again, when one of Kombu's delivery trucks became stranded in a large pothole, and after a series of negotiations between council and the private owners of the space, the surface was completely resealed.

But access for large delivery trucks along the one-way lane continues to be fraught with difficulty, as it has always been.

Only one truck can stop in the laneway at a time, and the driver has to choose whether to unload there, frustrating motorists trying to enter the parking lot, or else unload in the parking lot itself, frustrating motorists trying to leave.

Late last year, Hearthfire had to do a deal with their flour company to ensure they would keep delivering.

"We agreed to pay an additional hourly rate if the driver was blocked from getting up the laneway," Dave said, adding that the driver also adjusted the timing of his visit so it didn't clash with IGA's deliveries.

"That was the only way they were going to continue to come to Bellingen for us."

Dave doesn't claim to be a traffic management expert, but he thinks the laneway loading zone needs to be restricted to an earlier, narrower timeframe, like 6am to 10am, rather than 8am to 4am.

"I believe that was the time allotted by the original traffic management committee," he said.

He also suggested the best overall solution for the laneway congestion problem would be for a section of the carpark to become the designated loading zone.

He's also still considering what to do with his Bellingen business. "To be honest, I'm still looking at getting out."

Last year, when they were getting panicky about the delivery problems, they mapped out the contingencies - how much would it cost to move the bakehouse, where to go, what size building would be needed, what would be the impact on staff.

Hopefully it will never come to that, but at least the plan includes having a shopfront in Bellingen, even if the bakehouse leaves.

That news will be a relief to those who love Hearthfire's products, but there would still be an economic loss for the shire.

"The bakehouse employs 13 people," Dave said. "Some of them wouldn't want to move to a more centralised location.

"The big thing is, we export 60 per cent of our product out of the shire. That's income for Bellingen. It's not a bad little earner."

Council was approached for comment and supplied the following statement on Monday:

"This is a complex and difficult matter that primarily involves privately owned land. Council recognises the importance of the car parking area at the rear of these shops for the businesses and community and despite the land being privately owned, is working with the individual property owners to find a solution that satisfies all parties.

"The signs erected earlier this week were done in response to ongoing concerns by the owner of the bakery in regard to deliveries and loading/unloading. These signs were erected with the sole purpose and intention to assist the business owner.

"Council staff have discussed and resolved the matter with the business owner and are pleased to have reached a positive outcome for the business and community.

"The resolution of the ongoing issues associated with the car parking area continues to be a priority for Council and are actively working with the affected property owners to resolve this historically complex and undesirable issue as soon as possible."