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Nightmare around Oxford Street: Sadiq Khan's 'pedestrian-only' zone for London's busy shopping hub hammers neighbouring streets with traffic jams as cars clog up roads

Nightmare around Oxford Street: Sadiq Khan's 'pedestrian-only' zone for London's busy shopping hub hammers neighbouring streets with traffic jams as cars clog up roads

Sadiq Khan's controversial pedestrianisation of Oxford Street has sparked traffic chaos, with motorists facing lengthy queues as vehicles are diverted away from the road for the first time.

The London Mayor's long-awaited scheme came into force yesterday, banning cars, buses, taxis and cyclists from almost a kilometre of the capital's busiest shopping street.

But while Oxford Street has been cleared of traffic, the move has already caused congestion on neighbouring roads, with lengthy queues reported during Monday morning's rush hour.

In one video taken on Wigmore Street today, cars and buses can be seen backed up in standstill traffic along the majority of the road.

Motorists, black cab drivers and buses have been forced to find alternative routes through the West End after the closure of the busy thoroughfare between Orchard Street, near Selfridges, and Great Portland Street.

Speaking to the Daily Mail Tim Barnes, Westminster City Councillor for Growth and Planning said: 'We have been concerned from the outset that taking London's main east-west road and pushing it to the smaller side roads behind was always going to inevitably lead to traffic problems. 

'You just can't take that much traffic out of central London and push it on to roads that are smaller, less well suited to taking big vehicles, and not expect it to cause problems.

While Oxford Street has been cleared of traffic, the move has already caused congestion on neighbouring roads, with lengthy queues reported during Monday morning's rush hour

In one video taken on Wigmore street today, cars and buses can be seen backed up in standstill traffic along the majority of the road

Motorists, black cab drivers and buses have been forced to find alternative routes through the West End after the closure of the busy thoroughfare between Orchard Street, near Selfridges, and Great Portland Street

'Last night there were there were all sorts of complications. There was traffic on Regent Street that was backed up, and indeed it stopped for so long at times that we even saw a big waste truck having to turn around and go the wrong way [up the street].

'And if you look at Wigmore Street, there are points where buses now have to make very, very hard right-hand turns or 90-degree turns, which I think will be a problem for pedestrians and cyclists. I also think it's only a matter of time until we see more incidents with cyclists hitting pedestrians on Oxford Street itself.'

The changes have prompted fears that traffic, noise and pollution will simply be pushed on to smaller residential roads, leaving those living and working nearby to bear the brunt of the Mayor's flagship project.

Among the roads affected by the new arrangements are Wigmore Street, Henrietta Place and Cavendish Place, which are now accommodating diverted bus services.

Transport for London has confirmed that five bus routes - the 98, 139, 390, N98 and N207 - have been redirected on to surrounding roads, with new stops introduced to accommodate passengers.

Other services have been shortened or altered, while taxis and private hire vehicles are no longer permitted to enter the pedestrianised section.

The upheaval comes despite warnings from Westminster City Council that the scheme risked creating serious problems for residents, businesses and motorists.

Councillor Tim Barnes, the council's deputy leader, previously accused the Mayor of rushing the project without adequately addressing concerns about its impact.

He warned: 'If this is going to be the "greener, better and more prosperous" success that the mayor has promised, then issues around access, air pollution, street cleaning and public safety need answers urgently.

'Right now there's a danger that we will have all of the downsides and too little upside.

'Traffic will be pushed to the small streets nearby causing economic and environmental harm.'

Residents in neighbouring Marylebone had also raised concerns before the closure that their streets would become increasingly congested as buses and other vehicles were forced away from Oxford Street.

The Marylebone Association previously calculated that Wigmore Street could see around 46 additional bus movements an hour during peak periods.

Henrietta Place has also been converted to accommodate two-way traffic as part of preparations for the scheme.

The changes represent a major transformation of one of Britain's most famous shopping destinations, which attracts around 500,000 visitors every day.

Under the new restrictions, buses, taxis, private cars, bicycles, scooters and pedicabs are banned from the pedestrianised section.

Delivery vehicles are permitted access only between midnight and 7am using designated routes, while emergency vehicles retain access at all times.

Several roads crossing Oxford Street remain open, including Regent Street, Duke Street and Great Portland Street, although other junctions have been permanently altered.

Despite the disruption, Sir Sadiq has hailed the transformation as a landmark moment for London.

The Mayor, who first proposed pedestrianising Oxford Street in 2016, described the launch as 'a truly momentous occasion for the capital'.

He hopes the project will transform the shopping destination into a world-class pedestrian boulevard, rivalling famous locations such as New York's Times Square and Paris's Champs-Élysées.

The scheme forms part of a wider regeneration programme designed to breathe new life into the West End amid changing shopping habits and growing competition from online retailers.

Plans include more than 50 new trees, two public squares, additional seating and improved lighting, with further changes expected by spring next year.

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Poundland could disappear from the High Street within days as Andy Burnham asks questions over how its owners handled a sales process.

Thousands of nervous staff are waiting to hear what will happen to the discount retailer after it filed a notice to appoint administrators with the High Court today. 

This will give the business, bought by US investment firm Gordon Brothers for less than £1 last year, some breathing room – ten days – to find a rescue deal. AlixPartners is poised to take over a potential insolvency process.

But the Poundland brand and its 600 shops will not be sold as a whole, leading to a carve-up of the 36-year old retailer, meaning jobs are at risk at any shops that are not bought. 

And on Thursday night, the Prime Minister said he is ready to demand answers from owners amid a 'deeply worrying time' for staff and their families. 

Burnham told The Telegraph: 'We want to see jobs protected. If there was a potential owner to avoid this that hasn’t been accepted, then the Business Secretary and I want to know why that is the case.'

Battle for survival: The fate of Poundland's near 12,000 staff hangs in the balance.

It would mark the biggest high street collapse since Debenhams closed its doors in 2021 with the loss of 12,000 jobs. 

Job losses could hit 600 shops and a distribution centre in Makerfield, Prime Minister Andy Burnham’s constituency, which employs around 270 people.

Business secretary Jonathan Reynolds also said he was ‘very much concerned’ and would push for answers as workers and bosses seethe over its failure to find a buyer.

He told The Telegraph: ‘If it is true that it was not necessary to put the business into administration then the present owners will have to account for that.’

Why has Poundland struggled? 

Chains like Poundland are battling shoppers with constrained budgets while costs, such as employing people, have increased – following Government moves to hike wages and employer National Insurance contributions. Savvier shoppers are looking for cheaper online alternatives, including Amazon, Temu and TikTok Shop.

Former owners, the Warsaw-listed Pepco Group, made some wrong moves that did not go down well with its customers, including putting Pepco clothing in its shops.

Its most recent woes stem back to last year, when it narrowly avoided collapsing into administration. The chain was sold in June 2025 to US firm Gordon Brothers for a nominal €1 amid 'challenging trading conditions'.

By November 2025, around 100 Poundland shops had been shut or earmarked for closure. Two months later, as part of its radical turnaround plan, Poundland had shut 149 stores with 2,200 job losses.

But this year, Poundland bosses insisted it was turning a corner, pointing to like-for-like sales growth of 3.3 per cent in the three months to September 26.

Poundland's managing director Barry Williams said earlier this month: 'Our recovery plan is working, thanks to our investment in simple low pricing and new ranges, powered by our new in-house teams.'

Why is there a dispute between Poundland’s owners and its bosses?

Both shop workers’ union Usdaw and Poundland’s management have accused Gordon Brothers of mishandling a sales process, which it kicked off at the beginning of September.

The union met with the minister for the future of work, Kate Dearden, on Wednesday, amid warnings of what would be the biggest High Street collapse in years.

Three directors, appointed less than a fortnight ago, this week walked out following a dramatic dispute with owners Gordon Brothers.

Hours later the retailer’s management hit out at the owners, calling the process ‘unexpected, unwanted and avoidable’.

Government adviser David Bickerton is set to ask ‘fairly basic questions of senior people around Poundland’ in order to ‘establish what the situation is,’ on behalf of the business secretary, the Financial Times reported.

What does a notice to appoint administrators mean?  

‘Filing a notice of intention isn’t administration itself,’ explains Julie Palmer, managing partner at real estate advisory group BTG.

Instead, it effectively keeps the wolves from the door for up to ten business days of protection and helps the firm preserve cash.

She added: ‘If an appointment follows, the administrators take control of the company from the directors. Their first duty is to try to rescue it as a going concern. 

'If that isn’t possible, they aim for a better result for creditors than liquidation would give. In practice that usually means a sale, either of the whole business or in parts. For staff and customers, stores normally keep trading while that happens, but the risk is that the business is broken up, with stronger stores sold and weaker ones closed.’

Who could buy the shops?

Owner Gordon Brothers rejected a takeover offer from Irish real estate firm Martin Property Group – despite management and unions arguing this was the best deal on the table.

This would have been for the whole business, including its brand and full store estate.

But now it seems like other major retailers, especially those with grand expansion plans, could pick up some shops from Poundland.

The owner of The Range, Homebase and Wilko – known as Britain’s ‘Del Boy Billionaire’ – is thought to be interested. Chris Dawson, 74, who runs CDS Superstores, acquired the Wilko brand out of administration in 2023.

Dawson got his nickname, the 'Del Boy billionaire', via the press as a reference to his yellow Lamborghini Urus, which has a personalised number plate 'DE11 BOY', a homage to the character Del Boy Trotter from the classic TV show Only Fools and Horses.

Dawson started his career as a market trader, before founding The Range and scaling it to a major high street chain. He has since acquired Wilko and Homebase out of administration.

Chris Dawson, 74, runs CDS Superstores, which owns The Range, Homebase and Wilko

Poundstretcher owner Fortress is also understood to be looking at buying shops. The rival discount retailer runs more than 300 shops in the UK.

Supermarket Lidl also hopes to be able to snap up some of its stores if the retailer fails to sell the whole company. The discounter is pushing ahead with a major expansion mission.

TG Jones owner is also understood to be interested in buying parts of the Poundland business.

The private equity group owns Britain's WH Smith shops, now known as TG Jones stores and previously bought ailing accessories chain Claire's, Hobbycraft and The Original Factory Shop.

All Claire's standalone shops in the UK and Ireland stopped trading earlier this year after its financial woes saw it fall into administration twice in a year.

Are shops open and will staff be paid?

Poundland shops are currently open and operating business as usual.

But Poundland's managing director Barry Williams wrote a letter to around 12,000, accusing the retailer’s owner of limiting the chain's access to funding.

This has effectively prevented bosses from making routine payments, with suppliers now worried they will not be paid on time this week, according to Sky News.

But sources close to the crisis talks insisted that this should not prevent staff from being paid at the end of the month.

Williams told staff: 'I'm disappointed to have to tell you that Gordon Brothers have given instructions that restricts our access to funds that we would, in normal circumstances expect to access fully under our existing loan agreement.'

Gordon Brothers are accused of breaching the terms of an asset-based lending facility by failing to submit a budget to the shareholders on time despite an agreed grace period – with the business now outperforming those forecasts, Sky News reported.

Julie Palmer, managing partner at real estate advisory group BTG, says that in this situation, ‘existing commitments such as payroll and supplier invoices can still be met from cash already available‘.

But bosses cannot ‘draw further funds to cover anything beyond that,’ she says, which poses a problem as retailers typically draw from these loans in the autumn to buy Christmas stock - before repaying from festive sales in December and January.

She added: ‘If a lender has concerns about longer-term viability, it may simply be unwilling to increase its exposure by funding that stock build, particularly when it can’t be sure who will own the business, or what shape it will be in, by the time the money needs to come back.

‘That leaves management with very little room to manoeuvre. It limits their ability to buy stock or take on new commitments, and puts directors in a difficult position, because they must be confident the company can meet its liabilities before taking on new ones. Once credit insurers pull back and suppliers start asking for payment up front, the squeeze tightens quickly.’

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