Following a boycott call from the Bectu trade union, the Doune the Rabbit Hole festival has been canceled.
Performers and crews who attended the festival the previous year were owed hundreds of thousands of pounds.
The event, scheduled to take place on July 21 close to Stirling, has been called off by the union that represents the creative industries.
The event's organizers claimed that they took every precaution to hold the event while "making good on promises to pay creditors.".
The festival was canceled, according to a statement on the Doune the Rabbit Hole website, due to a "campaign of misinformation" from Bectu that caused a drop in ticket sales.
"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," the statement read. "But we just aren't able to produce the event in the current environment.". ".
Following two years of cancellation due to Covid, the event was held at the Cardross Estate near Stirling in July of last year.
It entered liquidation in December and is currently under the management of Festival Food Beverage and Property Services.
The debt from the previous festival, according to director Craig Murray, was about £800,000.
The Bectu union represents contractors who perform behind-the-scenes work at musical festivals, such as stage crews and technicians.
The union decided to call for a boycott after speaking with the event organizers, according to Paul McManus, the Bectu's negotiations officer for Scotland.
Bectu was accused of "using conjecture, misinformation, and rumor presented in bad faith" by the festival's organizers.
A comment from Bectu has been requested.