The Festival of House has been cancelled after organisers admitted that a licencing row would be too difficult to overcome in time.
The announcement comes after Police Scotland and Angus Council said earlier this week that they did not believe the event should be allowed to happen on safety grounds.
However, organisers had previously insisted that they were confident the event would go ahead.
But the firm has now conceded that the festival, which had been planned for June 10 and 11 at Panmure Estate near Carnoustie, on would not happen.
Craig Blyth, Festival of House director, said: “It is with much regret we are announcing this year’s Festival of House will not go ahead.
“We are extremely disappointed to have reached this decision.
“The gap between all parties in terms of key plans is such that it is incapable of resolution in the time left before the event and that to go forward with tomorrow’s licensing hearing would be harmful to the relationship between the parties involved.
“We have proposed a formal debriefing to Angus Council, presenting an opportunity to look forward to planning another event timeously for next year. Lessons can be learned by all parties from such an exercise.
“We dispute entirely any suggestion by Angus Council the event would not be safe. The safety and wellbeing of fans and residents has been our priority from the outset, and we feel the core safety plans in place are comprehensive and robust.
“We would like to thank the many thousands of supporters who have unequivocally voiced their desire over the last twelve months for the festival to take place.
“This includes residents, local businesses and fans, many of whom were travelling to Angus for the first time from across the country, and who were looking forward to enjoying a weekend of world class music in a beautiful part of Scotland.
“The festival would have brought significant benefits to the region and generated a much needed, long lasting economic legacy.”
Thousands of tickets have already been sold and major acts have been booked and are set to play at the event.
“Most of all we would like to express our disappointment to the thousands of fans who have bought tickets for the festival and offer them our sincere apologies.
“We would like to reassure fans who have bought tickets a full refund will be swiftly administered.
“Refunds will start to be processed by Skiddle next week. Any further queries should be directed to info@festivalofhouse.co.uk.”