The Zutons were named as a headline act for the festival
Music festival organisers in Cornwall have been trying to find a new venue after their licence was withdrawn.
Beach Break Live was expected to welcome up to 10,000 students at St Agnes, from 16 to 19 June.
But organisers said Cornwall Council withdrew the licence amid objections about safety and traffic. The council has not commented on the matter.
Beach Break Live said it was trying to find another site, but if it failed, ticketholders would be refunded.
The festival was planned for Agnes Beacon, where parties and events like the Surfers Against Sewage Ball have been held many times before.
Tough and frustrating
Key authorities, including the police, had no objection to plans for the festival which was due to host acts such as The Zutons and Dizzee Rascal.
But they were rejected by Cornwall councillors, who raised concerns about the dangers of so many teenagers partying close to the cliffs.
The event's website stated that the last weeks "have undoubtedly been the most tough and frustrating days in our lives and in the life of Beach Break".
It talks about tears being shed after wranglings with the council.
The organisers claim that despite permission being refused at the original site, the council had been working with them to come up with an alternative.
However festival director Ian Forshew told the BBC that the council had since decided not to grant a licence for another site in the county.
Organisers said on their website there is a second "main option" which was to run a "camping event at a different beach location".
They said: "Worry not Beach Breakers the ticket holders are always our top priority and if the event doesn't happen then everyone will be refunded.
"However, that's never been an option for us.
"Keep the faith friends! Gilgermesh the god of summer festivals is looking over us."
One ticket holder, 20-year-old Rozita Rahman from Plymouth, said: "I'm definitely worried about the situation.
"I have no idea what's going to happen.
"But if it's going to be on a different site that's not near Cornwall I would definitely expect a refund because it would be very difficult for me to get to."