The decision was confirmed in a press release issued by festival management, which said: "After reviewing the current state of the organising company, the new management has found economic, financial and operational problems that significantly affect the project's viability."

The cancelled dates had been due to take place in Alicante, Tenerife, Barcelona, Madrid, Mallorca, Santander and Nigrán.

Organisers acknowledged the disappointment and the knock-on effects the cancellation will have for festivalgoers, artists, institutions, sponsors, suppliers and other partners.

Eight years in business

The closure brings an end to eight years of the festival, which had built a reputation as one of Spain's leading urban music events.

"Despite this difficult outcome, we'd like to thank the community that helped Reggaeton Beach Festival grow and we're sorry for any impact this situation may cause," organisers said.

RBF said it is now dealing with the financial, contractual and administrative fallout from the closure and will set out instructions for those affected, including ticket holders, through its official channels in the coming days.