The organisers are blaming the recession but since they launched a couple of years ago during the recession that seems an odd reason. Maybe they overreached themselves with the lineup (a lot of big acts) and realised they couldn't meet their costs? LadyRock, a new fest in the North west cancelled the day before GoGo, also citing recession.
L Fest is still happening and say they are definitely NOT cancelling and have no concerns about their ability to meet their costs. Everyone I know who went loved it last year.