The event was due to take place on the first two weeks in July, but has been postponed until 2018, when organisers hope to rebrand it.
Volunteer Steve Francis said: “It’s been a hard decision to get to this point, but we feel that it is the braver one to take.
“But it’s the same story, there’s too much work to do and not enough volunteers to make the festival work.
“Taking a year off and working hard to rebrand it is the only way the festival will survive.”
The Bushey Festival Association hopes instead to hold the event over two weekends instead of the fortnight it used to be and have the main events based in one location, such as the Moatfield.
The event has taken place in Bushey since 1983.
Organisers will be holding public consultations with Bushey residents to see what people would most want to see at the event.
Mr Francis added: “We need to find out what the next generation want as it is them that will carry this legacy on.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here