The operator of an arts and culture site close to the ExCel Olympics venue has gone into administration.
London Pleasure Gardens (LPG) had received £3.3m in funding from Newham Council to run the 20-acre site.
Administrators Deloitte said the site on Pontoon Dock had fewer visitors than expected, attracting fewer than 7,000 visitors per day.
A council spokesman said it would get the money back and make a success of the site with a different operator.
"The decision by London Pleasure Gardens Limited to enter into voluntary administration is regrettable but understandable.
"It is disappointing that the anticipated visitor numbers and revenue from recent planned events have not materialised."
Joint administrator Rob Harding said: "Unfortunately, London Pleasure Gardens has underperformed against its original business plan both in respect of festival activity and far fewer visitors than originally envisaged passing through the site and using its facilities.
"This has manifested itself in a cash flow shortfall in the business resulting in the directors having no option but to appoint administrators."
LPG is one of two exits Olympic spectators are directed through after watching events including boxing, table tennis, weightlifting, and wrestling at the ExCel centre.
Earlier this week, traders had complained about poor management of the site and lack of customers.
The council spokesman added that the event had been the victim of how successful Olympic organisers Locog had been in getting people away from the venue.
He said LPG had counted on people waiting to use public transport for custom.
However, Locog said: "Sensible business planning to allow the DLR to cope with a large influx of passengers during the Olympic events at the Excel Centre meant that temporary limitations on promoting the Pleasure Gardens at Games time were agreed with the venue at the outset and would have been factored into their business model.
"Locog has certainly been encouraging spectators choosing to leave the Excel Centre that way to make use of the Pleasure Garden facilities."