Shares in the company headed up by the live music impresario were suspended on Friday at 2.12p, a drop from their 66.5p debut in June 2011, The Guardian reports.
"The board has in recent weeks pursued a number of different funding proposals but the company has not been able to procure the necessary funding it requires," the company said in a statement.
Investors were given a warning at the start of the summer that ticket sales were disappointing for England's Hop Farm and Spain's Benicassim event.
Hop Farm 2012, headlined by Bob Dylan, Peter Gabriel and Suede, was reported to have made a loss while Benicassim was less profitable than in previous years.
Power this summer complained that the BBC funding of the Radio 1 Hackney Weekend festival was unfair.
"If the BBC is giving something out for free, then we can't compete," Power said. "It's really pissed me off."
Leonard Cohen's 'A Day at the Hop Farm' shows on September 8 and 9 were moved to Wembley Arena at two weeks' notice due to "unforeseen circumstances".
Power launched the Mean Fiddler venue in 1982 and later turned it into a live music company. He signed a deal with Glastonbury in 2002, before selling Mean Fiddler in 2005.
He returned to the UK market with Hop Farm in 2008 and followed it with the creation of London's Feis in 2011.
Power had last summer suggested a return of Phoenix Festival but it did not take place this year.
Bestival organiser Rob Da Bank had welcomed the possible comeback, but also told Digital Spy that 2012 would be "very tricky" in the festival market, adding that there was a risk of festivals disappearing.
"There are now 700 music festivals over the summer. But I think people will start to be aware that it's reached saturation," he said.
"With the economic crisis, there are a lot of festivals which have had a much harder time this year. A lot of festivals haven't sold out. It's not all a rosy picture."