The women were set to make £30million each following the tour which was due to begin in late September after manager Simon masterminded the comeback.
MailOnline has contacted a representative for Victoria for comment.
The insider claimed that the band was in 'disarray' following 'heated debates between the girls and Victoria'.
The source said: 'Simon was brought in to convince her to take the offer but now he's failed they feel he's used them to put his name back on the map.'
It is claimed that the other girls approached Victoria last week and gave her an ultimatum between them and Simon.
However it is believed that she chose their manager, who managed to turn her brand into an empire.
The cause of this latest chapter in the reunion saga is apparently to do with money, with a source stating that Mel B and Mel C are wanting to 'cash in'.
Despite her solo success Mel B's recent account history shows that her company Red Girl Records is £808,568 in debt with her Red Girl Touring Ltd suffering losses of £77,956 last year.
Her financial situation was laid bare in the courts last year as it was revealed her multi-million fortune had been wiped out due to her 'extravagant' lifestyle.
And in another shocking twist to the Mel B and Stephen Belafonte divorce battle, it was claimed the Spice Girls star has just £961 left in one of her company accounts.
Accounts filed for Victoria's luxury label, which sells high-end dresses and accessories, saw losses almost double to £8.5 million last year - up from £4.3million in 2015.
Meanwhile husband David's company DB Ventures, which handles the former footballer's endorsement deals, reported a profit of £24.9million after tax in 2016. This is the equivalent to roughly £2million a month.
Sales at VBL remained stable over the year however losses grew on the back of increased investment in the fashion brand's design, marketing and sales.
Earlier this year the former pop star's fashion business was valued at £100million following a major cash injection from former Goldman Sachs banker David Belhassen, the man behind French-inspired bakery chain Paul.