The event, co-created by Ja Rule, was scheduled to take place in the Bahamas this weekend and was touted as a unique, multi-day luxury music and arts festival celebrity chef- catered meals and impressive accommodations, reported People magazine.
In reality, the festival appeared to be half-finished when attendees started arriving and many bands - including headliner Blink 182 - had dropped out of the lineup. Attendees also complained about the lack of services and overall chaos involved in trying to get to the actual venue.
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Taking to Twitter, the 41-year-old singer apologised for the inconvenience caused.
"Relieved to share that all guest are safe, and have been sent the form to apply for a refund. Our deepest apologies... #fyrefestival (sic)"
Ja Rule also insisted the blunder wasn't his fault, but said he was "taking responsibility" and working on returning the money to disappointed revellers.