Oarsmen floundering in Mediterranean resort (3,4)
I believe the answer is:
san remo
'mediterranean resort' is the definition.
'oarsmen floundering' is the wordplay.
'floundering' indicates anagramming the letters (letters flounder or move around).
'oarsmen' is an anagram of 'SAN REMO'.
'in' acts as a link.
(Other definitions for san remo that I've seen before include "on the Med" , "Scene of Lear's death" , "Italian port" , "Ligurian resort" , "Tourist city on the Italian Riviera" .)