Blackpool’s Livewire Festival was due to take place on the August bank holiday weekend with a headline show from US singer Lauryn Hill.
Its organisers said “investor issues” had led to the cancellation, adding the decision had not been “taken lightly”.
The festival was postponed for a year in 2018 due to the ill-health of “key personnel” involved.
Blackpool Council said it was “disappointing” and that it was now exploring whether there were other events it could bring in to fill the gap.
The three-day event was also due to see a comedy showcase featuring Jason Manford, Alan Davies and Chris Ramsey and show featuring songs from cinema classics, featuring the Royal Philharmonic Orchestra and singer John Owen-Jones and Kerry Ellis.
The festival’s organisers said they had “explored every avenue we possibly could to keep the event on”.
“However, due to funding, we have had no option but to cancel the event,” they added.
“We would like to take the opportunity to apologise to all ticket holders – however, this is beyond our control.”
Those with tickets have been advised to seek refunds from vendors.