Steps, Kylie Minogue, Jason Donovan, Dead Or Alive, Rick Astley, 2 Unlimited and Sinitta were all due to perform at the music concert.
The festival, which was due to take place in London's Hyde Park tomorrow (July 11), was organised to celebrate the 25th anniversary of the PWL record label, famed for launching the major pop artists' careers.
Organisers have had to cancel the event 24 hours before it was scheduled to start after the festival site was deemed unsafe due to its water-logged and muddy state.
Hyde Park has had less than 48 hours to recover from the past weekend's Wireless Festival, which experienced downpours of rain throughout its three-day duration.
John Probyn, Live Nation COO, said: "The moment the Wireless Festival ended, we put in place a massive plan to prepare the site for tomorrow.
"8,000 cubic metres of wood chip is currently being put in place and over the past 24 hours crews have started to make the site safe for our customers.
"Despite best efforts time has beaten us, but I want to reassure that Hard Rock Calling concerts with Soundgarden, Bruce Springsteen and Paul Simon, plus Madonna on 17 July and the BT London Live Opening Ceremony Celebration concert and the events will go ahead."
Steve Edwards, Hyde Park manager, added: "Woodchip is being laid on the concert site as part of plans to ensure concert-goers can be welcomed back as soon as possible.
"We are confident that the action being taken will enable Hard Rock Calling and the remainder of the summer concert series to go ahead as planned."
PWL Hit Factory Live ticket purchases made through Ticketmaster and See Tickets will be automatically refunded.
Customers who purchased their tickets elsewhere are advised to contact their point of purchase.
Watch the music video for Steps' 'Tragedy' below: