Blue have now been dropped by their record label, after releasing their fifth studio album 'Colours' last month but selling only 4,000 copies of the LP in its first week.
Blue in February
A source revealed: "Blue had a two-album deal but last week they were informed they'd been dropped after the performance of 'Colours'.
"It's a massive blow for them because it really was their last chance at commercial success.
"It's time for them to accept that their days of releasing hit singles and albums are over. No second single from the album."
The group - featuring Lee Ryan, Simon Webbe, Antony Costa and Duncan James - announced their record deal last year, when they said it felt "great" to have signed to Sony.
At the time, they said: "It feels great to be joining the Sony family -- 2015 is set to be a brilliant year for us and we look forward to sharing our next chapter with the fans."
The group - who originally split in 2005 - made a comeback in 2011 when they competed in the Eurovision Song Contest, and later appeared on ITV2's 'The Big Reunion' and released their album 'Roulette' which charted at number 13.
However, the group could be set for one final album, as Sony suggested they might release a greatest hits collection to celebrate the band's 15-year anniversary.
The insider told The Sun newspaper: "There's some talk there might be a Greatest Hits or something to mark 15 years of Blue, but there won't be another whole new album with Sony."
Tagged in Duncan James Lee Ryan Simon Webbe