PLANS to create a skatepark in Lostwithiel have suffered a setback after the company employed by the town council to design and construct the facility ceased trading.
Cornwall Council had granted planning consent for the design by Wiltshire-based 1Skatepark to be installed in the King George V playing field.
The firm posted a Facebook message two weeks ago saying it had cashflow problems and had closed down.
Grants and local fundraising for the skatepark have totalled more than £95,000. The town council said this week that none of the money earmarked for the project had been handed over to the company.
The town council, which owns the recreation area, put in the successful planning bid on behalf of the Lostwithiel Skatepark Project, made up of local residents including those involved in the town forum.
Now there is real concern that the skatepark will be delayed for some time.
The town council will have to find another company to design and construct the skatepark, forcing another planning application to Cornwall Council, although the council is attempting to contact 1Skatepark to see if it can still use its original designs.
Money for the facility has included £50,000 from Sports England, £30,000 from the SITA Charitable Trust and £10,000 from the Lostwithiel Educational Trust, plus other local donations and money collected through fundraising events.
Town forum member Helen Taylor, who did much to raise the money locally, said the setback was depressing news for young skateboard and BMX enthusiasts.
"It's been three years now since we received the initial funding for the skatepark.
"I just hope it still goes ahead. The kids have been waiting a long time, and they have almost stopped believing it is going to happen.
"It's very disappointing news, and I just hope the large grants, which are always time sensitive, will not run out," said Mrs Taylor.
In a statement, the council said: "Lostwithiel Town Council continues to be committed to delivering a skatepark for the town of Lostwithiel and will provide further updates on the progress of the project as soon as available."