The English Open golf championship, due to be staged at the St Mellion International Resort in Cornwall this summer, has been postponed for two years due to delays incurred by a third-party developer as a result of the credit crunch.

Crown Golf, the resort's owner, and the European Tour confirmed that the event will now return in 2011 after it was revealed that a golf and holiday homes scheme led by Living Villages has run into financial difficulties. However, Crown Golf has insisted that its own £20m redevelopment project, including the construction of a new 80-bedroom hotel and the renovation of the Jack Nicklaus signature golf course, remains on track to officially open in June – two months before the English Open was scheduled to be staged.

The resort's Hamilton Suite has been converted into a new golf retail outlet, golf reception and conference room, while the International Bar and Suite has been refurbished. Stephen Lewis, chief executive of Crown Golf, revealed that although the hotel and golf course developments are to be completed on time, the residential scheme formed part of the necessary infrastructure to allow the English Open to go ahead.

"Like many companies, the credit crunch has created additional challenges for our partners engaged in developing golfers' accommodation at St Mellion," he said. ''Unfortunately, construction of the balance of the residential development has been suspended. This means that the necessary tournament infrastructure will not be in place and in the current climate, we believe a two-year postponement will ensure that all work is finished for 2011."

Keith Waters, director of international policy for the European Tour, added: "We fully appreciate and understand the challenge facing Crown Golf, and in particular their genuine desire to ensure that the return of the English Open coincides with the venue being fully prepared." Photo: Hiseman Partners/Bob Atkins