Trinity Mirror's 'New Day' newspaper will close on Friday after just nine weeks of daily publications.
Trinity Mirror said circulation figures fell considerably "below our expectations". New Day was hoping to sell around 200,000 copies a day, but in recent weeks have been as low as 40,000.
Politically neutral, the New Day was aimed at "time-poor" people.
Editor Alison Phillips said "we tried everything we could... but the reality was we didn't have enough of them [readers]".
Announcing the closure in a Facebook post, Ms Phillips said: "The response over the 50 issues we have published has been extraordinary.
"I have never worked on a title with such engagement from readers. There clearly were many people who truly loved the idea of a different kind of newspaper which spoke to them. But the reality was we didn't have enough of them on a daily basis."
In a trading update, Trinity Mirror said: "Although the New Day has received many supportive reviews and built a strong following on Facebook, the circulation for the title is below our expectations.
"Whilst disappointing, the launch and subsequent closure have provided new insights into enhancing our newspapers and a number of these opportunities will be considered over time."
Two million copies of New Day were given away for free on its launch day, with the price rising to 25p in the first two weeks and 50p after that.
It was the first national newspaper to launch in the UK since i in 2010. A similar model - a reduced version of the Independent, the i targeted time-poor readers at a cheaper price and is still running today, with a new online presence.