Doune the Rabbit Hole festival has been cancelled as organisers looked to blame a union boycott for sluggish ticket sales.
The Stirling festival ran from July 14 to 17 last year, but it emerged in October that a number of performers had still not been paid.
Organisers said the only way to ensure that outstanding monies were paid was to make enough money from the 2023 edition of the festival.
Doune the Rabbit Hole Festival Ltd, run by events promoter Jamie Murray entered liquidation in December, and was replaced by Festival Beverage and Property Services, run by former diplomat turned blogger Craig Murray, Jamie's father.
The event attracted further controversy when it emerged volunteers were being charged a £145 deposit to work at the festival.
Read More: Questions after Doune the Rabbit Hole demands deposits from volunteers
Earlier this month entertainment union BECTU urged a boycott of Doune the Rabbit Hole, stating that some artists were still awaiting payment for 2022 despite promises of full payment.
Speaking at the time negotiations officer for Scotland, Paul McManus said: "We explained to them the strength of feeling among the people who were owed the money by them.
"We agreed a number of measures with them that we felt would allow us to support the music festival going forward.
"Sadly they fell down on those commitments, to the extent that we're no longer in a position to support the festival."
The Scottish Live Events Network warned potential contractors and employees to "consider very carefully before working with some of these organisers" in December.
Read More: Doune the Rabbit Hole accused of 'insult' over unpaid artists
Craig Murray stated on social media that this was a "politically motivated campaign of lies" and "cancellation of 2023 would mean nobody gets paid".
This week ticket sales were halted on the festival's website, and it has now been confirmed that the event has been cancelled for 2023.
A statement from Doune the Rabbit Hole said: "We are beyond devastated to announce the cancellation of Doune The Rabbit Hole 2023 and the end of the Festival for the foreseeable future as a result of the call for a boycott of the event by BECTU.
"The team has tried everything in our power to recover from the challenges of 2022 and to produce the event our audience deserves, while making good on our promises to pay creditors from the 2022 event. Sadly, since the start of BECTU’s call for a boycott in June, based on a campaign of misinformation, the numbers are just not stacking up and we have no choice other than to cancel the event.
"We’ve looked at all options to keep the event on the table, as we know how much it means to all the people and families who have bought tickets, but we just aren’t able to produce the event in the current environment.
"We’ve seen a number of other festivals cancelled across the country so far this year citing the cost of living crisis and increased costs as factors. Those events have not also had the challenges posed by sustained media and social media campaigns spurred on by BECTU, to try and prevent them from going ahead using conjecture, misinformation and rumour presented in bad faith."
The statement then included a number of graphs showing ticket sale trends and stating "our sales have receded since the BECTU statement on 4th June, despite a marketing push which would normally see a good return".
Craig Murray said on his blog: "There is no money left for ticket refunds; people will have to apply to their card issuer. That should work – the card processor holds back 20% of revenue from us, and other independent festivals, as a bond against this happening. But I am extremely conscious that this is not an instant process and many families’ holiday plans will be messed up."
A Bectu spokesperson said: "Bectu, The Musicians’ Union and Equity are of the view that it is unfortunate that the Doune the Rabbit Hole festival due to take place in Stirlingshire on the weekend of 21st – 23rd July 2023 is now cancelled.
"However over the last few years this festival has amassed well over £1 million pounds in unpaid bills to both bands and staff (£800,000 in 2022 alone). Many people including the headline bands last year were paid nothing other than their deposits, in some cases bands are owed tens of thousands of pounds with no hope of getting their final payments, and this years cancellation will impact yet more bands and staff.
"As trade unions we have tried to have a constructive dialogue with the organisers of the festival, but the undertakings which were offered to us were not forthcoming. The organisers said that they would share sales figures in order to reassure us that they would make enough profit this year to begin to repay the debts owed by the previous festival. They stated their intention to repay those debts over 3 years. They have not provided any such information and that undertaking to repay those debts is now in jeopardy.
"In a radio interview on Good Morning Scotland on June 8th Craig Murray, one of the festival’s organisers, stated that Doune the Rabbit Hole currently has ticket sales of £5,000 per week, but needed ticket sales of £25,000 per week to be on target. That he sought to blame trade unions, and by implication the very people who work so hard at the festival each year, was incredibly disappointing.
"We had agreed with the organisers that they would offer 100% deposits up front to those considering working at the festival, but again Craig disclosed that this has not happened, so once again those who had agreed to perform and work at this year’s festival will be left out of pocket by the failure of those organising the event.
"As trade unions we are concerned that the festival was able to enter liquidation last year and be reborn so quickly with so many of the same faces involved, and that concern has been born out with so many of the same issues this year.
"We would urge any members affected by the cancellation to make contact with their trade union and will provide all the support we can.”
The Lovely Eggs, who were due to perform at the festival, wrote on Twitter: "Gutted to find out Doune The Rabbit Hole has been cancelled.
"We were promised full payment in advance. We’ve not been paid anything. Hung out to dry like loads of others. (Although some acts have been paid in full). This massively affects DIY bands like us. F*****g fed up."
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