Independent traders due to run food, drink and other stalls at Beachdown were seething yesterday.

They had all paid in advance for pitches costing more than £1,000 each and many had already bought in stocks and supplies.

One trader from north London, who asked not to be named, said: “I only found out yesterday morning when I went on the website to try to get a delivery address. didn’t get a phone call, email, text – nothing. was all loaded up and about to set off, and I’m sure others will be in the same position.”

Bands were also trying to work out what to do. Several had not been paid for the event.

Pete Stannis, the manager of Karma Diva, who had been due to perform on the main stage on Sunday, said: “It is a real shame for us. It wasn’t so much about the money, it’s more about the exposure and the chance to play an event like this.”

The Blockheads were among the big name groups who were also disappointed.

Their manager, Lee Harris, said: “I tried to get hold of anyone from Beachdown ten days ago and no one got back to me.

“I found that weird because I was thinking, don’t they need to know our sound requirements and things.

It doesn’t really surprise me that it didn’t work if that’s the way they do their business.

“As far as I know, our agent hasn’t received any of our deposit and we would normally expect that before a festival.

“It’s disappointing because we cancelled another festival to play Beachdown.”

The abandonment of this weekend’s festivities, at a site overlooking Brighton and the sea, was kept under wraps even from Sussex Police and local authority Mid Sussex District Council until Tuesday.

A council spokeswoman said: “The event organisers returned the licence on Wednesday morning and formally confirmed the cancellation of the festival.”

Nina Garner, the director of the festival’s security firm, NGP Events, said: “It’s a very sad day for us and for the organisers.

“I have 170 staff here who have worked for months doing everything we could to ensure it went ahead not only for the sake of the organisers but on a personal level – most of us are from Brighton and we wanted it to work.

“The fear now is that people will head up here anyway and start a gathering – I know the farmer who owns the land is worried about that.”

Nick Love, the site manager of last year’s inaugural event, is in the process of taking legal action against Future Festivals after being left £3,000 out of pocket.

Ian Brown, the director of Winner Plant in Worthing, supplied the event with fork lift trucks but was left owed more than £5,000.

The total unpaid wages for the event was never confirmed by Future Festivals but was estimated to be up to £30,000.