The news was announced on the ATP website and Facebook page. Barry Hogan, founder of ATP, said in a statement: "It is with deep sadness we regret to inform everyone that as of today Tuesday 12th August 2014, ATP is being forced into cancelling this weekend's Jabberwocky festival. Refunds will be available to all customers at the point of purchase.
"We have put everything into promoting Jabberwocky, and despite healthy ticket sales, all our efforts could not take those sales to the point that we needed to finally stage the event.
"Over the past month and all the way up until this moment we have tried every possible course of action to follow through in delivering Jabberwocky to you, but the position we unfortunately find ourselves in as a result of a succession of events that have lost money in an increasingly aggressive festival market, means we are no longer able to do so."
Hogan added that all other ATP shows will still go ahead as planned, and apologised to ticket-holders for the cancellation.
The arts, film and music festival, which was organised by ATP in partnership with online music magazine Pitchfork and music events company Primavera Sound, was scheduled to take place at the Excel London between 15 and 16 August.
The venue issued a statement on its website that read: "ExceL London sincerely regrets that this decision has been taken and we apologise for any inconvenience caused to ticket holders."
Performers scheduled to play included Neutral Milk Hotel, James Blake and Darkside.
Some ticket-holders reacted badly to the news. Lewis Horder said on Facebook: "Shame as what they stand for and the music genre they represent is fantastic, but they seem completely incapable of running a business."
Callum Law added: "For those of us who have sunk about £300 into travel, accommodation and the tickets, could we not try and keep it going somehow? I know every possibility will have been looked into, but three days notice is ridiculous."
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