Promoters risked a "devastating" shortfall if the event were to go ahead, the statement said.
"Despite a stellar line-up of artists and the best promotional endeavours on SoulFest's behalf, the event has simply not received the support via ticket sales, and the financial loss that would be incurred by the event if it were to go ahead as planned would be devastating.
"There have been many people working behind the scenes, including media partners, artists, sponsors, sub-contracted promoters, communication managers, agents and suppliers who live, breathe and support this incredible genre of music and have worked tirelessly to try and make this event a success.
"The promoter of SoulFest International Australia, John Denison, sincerely apologizes to all involved who have dedicated 7 months of their lives to work on this festival,
and to the supporters of the event who purchased tickets."
Fans lamented the festival's demise on Twitter:
Ticket deals had been offered on GrabOne this week, discounting them down to $130.
Soulfest was set to kick off a major summer of music festivals, including Raggamuffin, Splore, Laneway, Auckland City Limits, Bay Dreams, Womad, McLaren Valley, Rhythm & Vines, Rhythm & Alps, Wanderlust and Northern Bass.
A host of Kiwi heavyweights have also confirmed summer tours, including Six60, Shapeshifter and Fat Freddy's Drop.
Full refunds are available to all ticket purchasers.
- nzherald.co.nz