The X Factor musical - called I Can't Sing! - took to the West End in 2014.
But it closed just weeks after its official opening following poor ticket sales.
According to reports at the time, X Factor boss Simon Cowell lost £4 million on the project, which was conceived by Harry Hill.
The comedian wrote the story and pitched the idea to Simon - but hasn't spoken to the music mogul since.
Speaking to the Daily Mirror newspaper this week, Harry took responsibility for the show's failure.
He said: “It was all my fault in many ways. It was an odd thing because me and Steve Brown, who wrote the music, had the idea. I was in front of the X Factor final and I had a few drinks and I thought ‘this is it – X Factor the musical’.
"I managed to get through to Simon Cowell and suddenly we were in his office pitching this idea and he says ‘yes, what do we have to do? I am giving you the green light – you are coming to London’."
Harry added: "And then me and Steve stumble outside and think ‘what are we going to do now? We have to write it’."