The path, behind the South Bay beach chalets and in front of The Clock Cafe, split over the weekend.
Part of a retaining wall has also been damaged, which occurred following the bad weather.
Scarborough Borough Council has now closed the area off and a number of the chalets are being kept closed for the safety of the public.
A spokesman for the authority said: “Last weekend a retaining wall to the rear of the chalets below the Clock Café partially collapsed, causing damage to the chalets and slippage of the path behind.
“The cause of the collapse is unknown at this time and is being investigated.
“The area has been cordoned off and we have restricted access to some of the chalets in the area.
“We urge the public not to access the closed off area and not to enter the chalets to retrieve belongings.
“We have contacted all affected chalet owners to make them aware of the situation and if anyone wants any of their possessions removing from their chalets, we will arrange to do this for them safely.”