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A renowned cosmetic surgery clinic faces closure because people cannot afford vanity treatments during the credit crunch.

Operations have been cancelled at the Cambridge Private Hospital and almost 30 staff, ranging from consultants to cleaners, have not been paid since before Christmas.

The hospital, at Wimpole, near Cambridge, was opened in the early 1990s by Anthony Erian, a plastic surgeon, and counted royalty and film stars among its clients. Four years ago it was bought by Sean Leyden, a private hospital magnate.

Mr Erian, who stayed on as medical director in Cambridge, blamed the economic downturn for the situation. He said: "I've been a plastic surgeon for 30 years and I've noticed people cannot afford big surgery any more. It is a luxury item, so they are putting that on hold and having small things like Botox. I thing that is what has happened here, because it used to be a profitable hospital. It's sad to see it go through a hard time because it is a fantastic unit and is known all over the world. Of course, it is worst for the staff."

The hospital offers breast enhancements from £4,250, facelifts from £3,750 and liposuction from £7,000. Celebrities have used it because of its location.

Mr Erian, who is also a surgeon at the 10 Harley Street Clinic in London, said he hoped that new backers would be found for the clinic.

He said: "The hospital is going to be closed for a while but a lot of people want to invest in it. I don't think it will disappear - I think it is just on hold."

A creditors' meeting will be held on Thursday in Cambridge. Mr Leyden could not be contacted for comment.

According to the British Association of Aesthetic Plastic Surgeons, demand for procedures carried out by its members doubled from 16,367 in 2004 to 32,453 in 2007. A large part of the rise was attributed to facelifts and liposuction.

Plastic surgeons in the United States report slowing demand for expensive procedures, which have long depended on clients with large disposable incomes.

A survey by the American Society of Plastic Surgeons showed that its members had performed fewer procedures in the first half of last year compared with the same period in 2007.

Mentor Corporation, a breast implant manufacturer, reported a significant drop in the number of implants that were sold in the US during the three months ending in September.

American surgeons have warned that customers looking for a bargain will lead to a surge in horror stories about "discount injectables" bought from unreliable suppliers and applied by poorly trained practitioners.