Riverside Live today became the second North-East music festival to be cancelled this summer.
The organisers issued a statement saying that due to poor ticket sales, the event - due to be held at Chester-le-Street on Sunday, August 28 - will not be going ahead.
It was due to be headlined by reggae legend Lee “Scratch” Perry, with Craig Charles doing a live DJ set with his Funk & Soul Club.
Also on the bill were pop-punk legends The Undertones, indie outfit The Ordinary Boys, The Ska Vengers and Beth Macari.
Just two weeks ago, another festival, Down To The Woods, which was due to take place on August 13-14 in the grounds of Hardwick Hall, near Sedgefield, County Durham, was cancelled for similar reasons.
Its line-up included Primal Scream, Chase & Status, Catfish & The Bottlemen, Echo & The Bunnymen, and Peter Hook & The Light.
Even offering early bird customers a VIP upgrade didn't boost sales of Riverside Live tickets, which were £30, plus booking fee.
A statement released by Riverside Live's organisers said: "It is with regret that we have to announce the cancellation of this year’s Riverside Live festival.
"The current financial climate has impacted badly on ticket sales. The low revenues so far generated mean that to proceed, is, sadly, not feasible.
"We have explored every possibility in an attempt to proceed with the event, but we have come to the extremely difficult conclusion that cancellation is our only option.
"We would like to record our thanks to the bands who had agreed to play, the fans who had purchased tickets, and anyone else who has supported Riverside Live this year.
"We apologise sincerely for any inconvenience that we may have caused, but we are not alone in having to cancel events in the area due to unexpectedly low demand.
"Refunds for all tickets purchased online will be sent automatically. Physical ticket-holders can obtain a refund from point of purchase."