Capital Disney, the joint venture between GCap Media and the Walt Disney Company will cease broadcasting on June 29.

The station has been on DAB radio for five years, and was one of first stations to launch on the platform.

A statement from GCap said: "The companies' individual goals have evolved over the last five years and both companies have now agreed to pursue their interests separately."

Breakfast presenter Matt James read the statement out on air before 8am this morning. The last day of live broadcasting will be Friday June 1, with non-stop music playing out for the remainder of the time.

The station, which is aimed at eight to 14 year olds, has failed to make a profit and currently has a weekly reach of 175,000 listeners aged four and above.

According to reports, Disney plans to launch a new national digital kids' station with a different partner. It is already part of the 4 Digital Group Channel 4-led consortium bidding for the UK's second national digital radio multiplex licence. GCap also has a rival bid in place with National Grid Wireless.