It is sad to hear that you have cancelled this competition but I fully understand why you have done it. In this day and age, to run a competition, and break even is almost impossible. I had given up running competitions long ago as I could not take the worry of what it was going to cost me, like you, I have run many competitions that have ended up with being way out of pocket.
I would be more than willing to support your competition by refereeing but I can't support it by sending entries because I can't get anyone interested. As I said to you last year the financial state of the country is putting people off spending money and that is why I think competitions are failing. You only have to look at Judo to see the entries have gone down. Please don't think people are not supporting you because it is not through lack of trying to encourage people to enter. You can take a horse to water but you can't make it drink!
The Olympics did not bring anyone to the martial arts, the legacy everyone spoke about has not happened. I had loads of people contact the club web site but none turned up or joined the club. Unfortunately, martial arts are not the 'in thing' at the moment.
It is a shame you feel this way but it is also very understandable, for whats its worth I have many happy memories of your competitions as do the old school from my club. Well I am off to play with my Play Station now!......only joking.
All the best