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Wheels and Fins ticket holders will not be getting a refund after the festival went into liquidation.
Organisers of the Wheels and Fins festival cancelled the event little more than a week before it was due to take place in Broadstairs last month due to "financial constraints".
Now, those who forked out £75 for an adult weekend ticket and £40 or more for a day pass will not be getting their money back.
A statement sent out by organisers says: "It is with an unbelievable amount of sadness that we must inform you that the festival will be going into liquidation shortly.
"With the festival forced into liquidation, we are truly sorry to say we are unable to refund any tickets.
"This is the worst part for us. Being unable to refund our audience, the people who have stuck by us and supported the festival, is a very painful experience for us, both as people and event organisers.
"We understand that this news will leave many of you angry and upset and we can only offer our genuine apologies.
"If there was any other way around this situation, we would have found it, but with ticket sales at the lowest they've ever been, it is simply impossible to salvage."
Those who booked tickets on debit or credit cards may be able to claim a refund from their provider.
The statement adds: "We have tried everything to avoid this outcome but have been unable to find a solution - to say we are devastated is an understatement.
"We have poured out hearts, souls and personal finances into the event as well as leaning heavily on private investors and friends.
"If you made a deposit for or paid for goods or services by credit or debit card and the goods or services are not going to be received by the due date, you may be able to get your money back by claiming a refund from your card issuer."
The event was due to be held on September 7 and 8 with artists including Friendly Fires, Slaves, Mystery Jets, Willie J Healey, Lady Bird, Killing Giants and Ditz.
It was located at Joss Bay on what was to be the biggest site yet and with three stages.
Visitors were promised demos from the best pro-skateboarders and pro-skaters as well as surf and paddleboard competitions.
The annual festival was started by Dave Melmoth and his brother Dan seven years ago and initially was a free event but became paid for two years ago.