The news came as Trinity Mirror holds its AGM today. Shares in the company fell to a three-year low of 111p yesterday.
The paper's launch raised eyebrows coming so soon after the news that The Independent would cease its print edition.
PR professionals gave a cautious welcome to its unconventional offering and layout when it launched, but the lack of online presence was questioned, with Darren Young, director of corporate, technology and public affairs, saying: "The decision to invest in a good presence on Facebook and Twitter seems sensible, but the omission of a good website appears quite curious."
Gavin Devine, CEO of MHP Communications, said: "It is a lovely idea to deal with big issues - the double page on discrimination against albinos in Tanzania is high quality, and addresses such an important issue - but does it sit comfortably in the paper alongside a full-page argument about whether Cheryl and Liam's relationship is doomed?"
Initial sales fell well below of Trinity Mirror's target of reaching 200,000 daily sales and achieving profitability by the end of the year. The New Day had a debut circulation of 150,000 on 1 March, but two weeks later estimates pointed to it falling below 100,000 as Trinity Mirror unexpectedly cut short a trial period to sell the paper at a discount.
Sources had told PRWeek sister title Campaign in March that the paper was still in its infancy and was learning a lot about how to produce a newspaper cheaply with an editorial team of 25.
A Trinity Mirror spokeswoman said: "We have decided to close The New Day newspaper with effect from Friday 6 May, concluding that the paper is not sustainable in the longer term on the current trajectory.
"It is with sadness that this project has not succeeded but we have useful insights and we uphold the importance of an innovative culture, particularly in a changing media industry. We have maintained financial discipline throughout so there will not be an impact on current market forecasts for the year."
This story includes excerpts from a piece that originally appeared on sister title Campaign