The four-day event near at Devil's Dyke near Brighton was expected to attract around 10,000 people and had acts such as The Zutons and Grace Jones lined-up to play.
"Very simply we were unable to meet the demands that the current economic climate put against us and at the eleventh hour, despite having most of the infrastructure in place, we have been forced to cancel the event," it said.
"We are personally shattered especially after eleven months of battling against the recession to try and put this event on and coming so close.
"We wish to say at this time how desperately sorry we are to all those who have bought tickets or were participating in the event. We explored every possible avenue to finance the event including re-mortgaging our houses to combat the unwillingness of banks to support us."
Ticket holders are being advised to get in touch with the outlet they purchased their tickets from.
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