Street of Dreams launched in Manchester in May, but the rest of its tour dates have been called off for the time being.
Paul O'Grady, the show's narrator, revealed in May that the actors had not yet been paid, with rumours later emerging that the stars had staged a mutiny.
Actors' union Equity have been holding talks to recover wages, with many stars still yet to be paid.
"Equity have been involved for weeks now, but no agreement has yet been reached and the cast fear they might never get the cash they are owed," a source alleged to The Sun.
"They paid all the expenses out of their own pockets, learnt all their lines and turned down other projects to be part of this. It's been a huge blow, both professionally and financially."
The musical was slated to still go ahead in the future, but a separate source claimed that a rescheduling of tour dates will be difficult.
"All the talent were committed to the show at the beginning," they said.
"But whether they'd be able to fit it into their schedules at a later date is very difficult to say."
Watch Paul O'Grady in a video clip promoting Street of Dreams below: