Churchill Downs Incorporated has dissolved its year-old entertainment division. That means the HullabaLOU music festival will not return next year.

Churchill Downs Entertainment was established to host entertainment events such as HullabaLOU and last month’s Fork, Cork and Style wine and food festival.

CDE lost five million dollars on the inaugural HullabaLOU. Officials blamed excessive heat and the economy for lackluster attendance. Despite the loss, CDE President Steve Sexton said in July HullabaLOU would return in 2011. But in a press release this week, Churchill Downs said HullabaLOU is cancelled, though it may return if the economy improves. CDE will be dissolved and Sexton has resigned.

Churchill Downs declined any further comment.

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