After enduring a torrid summer beset by a ticketing failure, confronted by a breakaway comedy festival and finally suffering a 9 per cent fall in sales, Jon Morgan, the director of the Edinburgh Festival Fringe, has resigned.

Mr Morgan - in his first full year as director - found himself presiding over chaos and at the centre of a storm caused by the failure of a new, computerised, box-office system.

For the seven weeks preceding the festival, not a ticket was printed or posted out - though 150,000 had been sold. Through the centralised box-office system, the Fringe took bookings but it could not provide venues with details of ticket purchases. There was confusion among customers, and venues and performers were left in limbo.

Steve Cardownie, the Deputy Lord Provost and Edinburgh Festival's champion, commended Mr Morgan for the integrity of his decision to resign, but added that it was inevitable.

“To use an untried computerised ticketing system was a mistake, and warnings had been given. People have to be able to buy tickets and performers have to be paid. Decisions were made that were found to be wanting.

“The Fringe has been healthier, but anyone predicting its demise is wide of the mark. The credit crunch, the Olympics and bad weather have all played their part in bringing sales down. But we enjoy a huge success every year - I am certain the festival will overcome this year's setbacks. The next director will inherit an healthy organisation,” said Mr Cardownie.

The extent of Mr Morgan's problems became apparent during the festival when he revealed that he had been able to see two shows, from the 2,088 on offer. Many felt that suggested a director overwhelmed by problems.

Shortly before the annual general meeting of the Fringe Society a fortnight ago, a consortium of 18 venues called for the Fringe Board to resign.

Simon Peers, director of Edinburgh Theatre Arts, said: “Our theatre group had massive critical success, and of course we didn't get the audiences to match. Every ticket is precious, and the failure by the box office meant companies were denied very valuable ticket sales.

“The Fringe Society were secretive about everything - there was a real lack of transparency about what we heard on the outside and what was happening on the inside.”

Baroness Smith of Gilmorehill, the chairman of the Fringe Society Board, said that she shared the sadness of the 13 permanent Fringe staff over Mr Morgan's departure. “The Board is very grateful to Jon for his significant contribution to the Fringe. In the short time he has been in post he has dealt with an unprecedented range of challenges. We are pleased that Jon is willing to assist with the independent review of the box office,” she said.

Mr Morgan, formerly executive producer at Manchester's Contact Theatre, put a brave face on events and said it had been a privilege to work for “the greatest arts festival on the planet”. Mr Morgan denied suggestions that the ticketing fiasco had been the reason for his resignation and said that he had been thinking for some time about moving on.

He added: “The role of Fringe Director has taken me away from my first love - producing and presenting performance to audiences - and my intention is to return to that more direct relationship with artists and audiences.” He has quit with immediate effect.

Times Recommends

• Tower block death blaze ‘suspicious’
• Licence payers fund BBC chief's £8m pension
• Potter star falls victim to swine flu