Sheridan's Smith problem-plagued West End musical, Opening Night, has been cancelled two months early after it was blasted by critics and audience members.
The show will now end its run at the Gielgud Theatre in London on Saturday May 18, two months earlier than originally planned on July 27 - as producers blamed a 'challenging financial landscape' for the shock decision.
Announcing the news on Thursday, the production team said that the play 'may not have had the life we had hoped for'.
Sheridan recently implored people to come and see the show after it was slammed by theatregoers who claimed it was 'boring' and walked out half way through.
However, it seems it wasn't enough to garner audiences for the poorly reviewed play, which producers have now admitted was 'always a risk'.
Sheridan's Smith problem-plagued West End musical, Opening Night, has today been cancelled - she was pictured here leaving the Gielgud Theatre in London after last night's show
The production had been blasted by critics and audience members, despite praise for Sheridan's performance which includes staggering 'drunkenly' in the street outside
Opening Night will now end its run at the Gielgud Theatre in London on Saturday May 18, two months earlier than originally planned on July 27 (Sheridan pictured at the play's press night)
Announcing the news on Thursday, the production team said that the play 'may not have had the life we had hoped for'
Announcing the early end of the run, producers Wessex Grove said: 'It is an honour to produce this beautiful new musical in the West End, and everyone at Wessex Grove is proud to have delivered the artistic vision of Ivo Van Hove and Rufus Wainwright and their incredible team, led by the exquisite Sheridan Smith.
'In a challenging financial landscape, Opening Night was always a risk and, while the production may not have had the life we had hoped for, we feel immensely proud of the risk we took and of this extraordinary production.
'Our world class cast delivers a brilliant show night after night, and there are still five weeks left to see Sheridan Smith in the role of a lifetime. What is sure-fire and safe has its place.
'But Wessex Grove exists to produce great artists in the West End and to provide the space for original, artist-led productions in the commercial sector, productions exactly like Opening Night. We're grateful for all of the support everyone has given us as we made this show, and look forward to celebrating the rest of the run.'
Writer Ivo has defended the play branded leading lady Sheridan 'brave' for accepting the complex role in the performance.
He said: 'I had the most wonderful and inspiring time making Opening Night thanks to the talent and commitment of our incredible cast and production team.
'They were led by the exceptional Sheridan Smith, who had the bravery to play such a complex role in the West End. I try to be fearless and sincere in everything I make.
'With Rufus's beautiful music, we made something totally unique and true to John Cassavetes' daring exploration of the human condition.
Sheridan recently implored people to come and see the show after it was slammed by theatre goers who claimed it was 'boring' and walked out half way through
Opening Night will now end its run at the Gielgud Theatre in London on Saturday May 18, two months earlier than originally planned on July 27
'It will forever have a special place in my heart. It is always sad when a show closes early but I know that Opening Night will live long in the memories of those who saw it and made it.'
It comes just days after the musical was hit by another issue this week when she was 'banned' from leaving the theatre due to a nearby crime scene.
The show is performed in a venue situated between two pubs in London's West End, naturally attracting rowdy drinkers.
During the show, Sheridan's character Myrtle Gordon goes out onto the street to perform a scene while the audience watch from a screen inside - which has been surprising and sometimes fooling passers-by outdoors.
Myrtle, who is a functioning alcoholic actress, is filmed slumped outside the stage door, however her regular routine was interrupted by a police incident nearby.
She told The Chris Evans Breakfast show on Virgin Radio: 'Security wouldn't let me go out too far the other night because someone was being arrested and restrained.
'I was like, 'It's fine, it doesn't matter and they were like, 'No, no you can't go too far over that way.' So I had to start the scene a bit closer to the stage door.'
Sheridan also revealed that the location of the theatre can cause issues, as drunk revellers sometimes come and try and help her up.
She said: 'It's right between two pubs, so people are all outside hammered and they want to come and try and help me.'
Performances of Opening Night each night have involved Sheridan Smith falling out of the theatre and staggering back along the street, playing drunk
At one point in the show, Sheridan's character Myrtle takes a tumble outside while the rest of the cast gather around her
A member of the door staff from a nearby venue says that that the event conjures crowds every evening but that not everyone is aware the display is part of a performance
Her radio appearance came after she defended the musical, after it was revealed earlier this week that ticket prices have been slashed for the show.
She stars as Myrtle in the new musical - which is based on the 1977 drama film starring Gena Rowlands.
However fans have been left baffled and bored by the production, with scores of theatregoers streaming out of the show nearly every evening since its March 6 debut, complaining about the bewildering plot.
Reporters who attended Opening Night at the Gielgud Theatre saw at least 50 audience members leave during the interval on two separate evenings last week. Staff at the theatre confirmed it was a regular occurrence.
'Sheridan has been a resounding success but the show itself has been far from it. To say it's been polarising is an understatement, reports of theatre goers walking out at the interval have really worried some of the investors,' a source told The Sun.
'No official meeting has been held yet, but a number of them have spoken about how they would go about serving notice on the theatre and cutting the run of shows short.
'At the end of the day, even though it's entertainment, it's a business and they are worried that poor ticket sales will mean they don't make their investment back, Sheridan is a saving grace for Opening Night because of how good she is on stage, but even her star power can't get the crowds in.'
Ms Smith with fellow cast members. There had been earlier warnings the play could end earlier than its scheduled last show in July
She told The Chris Evans Breakfast show on Virgin Radio: 'Security wouldn't let me go out too far the other night because someone was being arrested and restrained'
Sheridan pictured heading to her Virgin radio appearance with host Chris Evans
The insider added while Sheridan's stint in Shirley Valentine last year was a resounding success with tickets selling out, there are still lots available for Opening Night which is 'turning into a disaster' for bosses.
In an attempt to fill up the audience, Sheridan herself begged fans to attend the production as she admitted she feels 'so much pressure'.
Speaking to Scott Mills on his Radio 2 show on Tuesday, she confessed about performing: 'I get terrified, it's worse as I get older. I was fearless when I moved to London. Now, there's so much pressure.'
Begging listeners to purchase their tickets, she added: 'It's absolutely fascinating and fun… please come!'
The musical begins with Myrtle (Sheridan) left traumatised by the death of a teenage fan.
Sheridan - who exclusively told MailOnline she took on the role to 'take control' of her own demons - can be seen outside the theatre as Myrtle, turning up late to the first night of the show after taking a drop too much.
She said: 'It feels like a moment of taking back control. I feel like the part is a gift, it's a gift of a part for any actress to play and I'm loving every minute of it, it's such an honour. I can't wait for people to see it now.'
Tickets have already been slashed for the show and are being sold on London Theatre with a 36% discount meaning prices now start at a mere £25. ShowFilmFirst are also selling them for the same price.
Ms Smith as Myrtle Gordon in Opening Night, which had seen ticket prices recently slashed
Sheridan Smith had begged fans to 'please come' to under-fire West End musical Open Night after slashed ticket sales as she admitted 'there's so much pressure'
Imploring radio listeners to purchase tickets, she said of the show: 'It's absolutely fascinating and fun… please come!'
Previously, front row tickets would have set theatregoers back £176 but can now be purchased for £110.
Among those heading for an early exit was Helen, 59, an admin worker for the NHS, who went with a friend.
She said: 'I didn't have a clue what was going on. It's not Sheridan – she's a great actress – but I was falling asleep.'
But businesses near the theatre have praised the play for boosting their profits, with her 'drunken' tumbling in the street outside attracting onlookers.
Restaurant manager John Forte said: 'This performance is really good for all of the businesses in Soho.
'People are coming out to watch her fall over in the street and then they come to my restaurant and buy food and drink. The theatre is very good for business.'
Supermarket worker Tanmay Singh, 24, said: 'The first time I saw her fall over I thought it was real. I thought she was drunk.
'I thought this is what it is like in the centre of London – people getting drunk and falling over in the street, but now I know it is part of her show.
'I think it's very clever because it was like it was reality - you cannot tell that she was acting. She really looked like she is drunk.'