Without looking at their books and prior management practices its hard to say exactly why. But they did have a rash of bad product at the end of prior ownership and also delays in ability to supply many of their items. Such things point to the difficulty of managing a reliable supply of quality items from China (14 week lead from order is minimal lead time for most contracted items) and / or a serious capital shortage. Buying custom contracted stuff from China is best left to folks with the resources and skill to do it well, not a small shop like Gerbing's, so to some extent they must also have had naive management. Its also not much of a secret that their controllers are antique designs badly in need of updating so some amount of business was lost to folks with newer designs.