One of Australia's longest-running fetish leather stores is rejoicing after an Andrews government plan to replace parking in front of its business with 24-hour bus lanes was watered down.

Eagle Leather and other businesses in a small section of Hoddle Street near Collingwood Town Hall warned this week they were on a "fast lane to bankruptcy" if Roads Minister Luke Donnellan pushed through the permanent clearways.

The 24-hour clearways were to traverse all of Hoddle Street in Collingwood, from the Eastern Freeway to CityLink and the Yarra River.

The government has already put permanent clearways on both sides of Punt Road, from the Yarra to St Kilda Junction.