It's a small niche market and demand doesn't have to fall much before things dry up. What could have saved a company like this is diversity in their product line. They made more than half a dozen products that did the same thing, and not much else. If they offered more products that had low manufacturing costs that people needs in perpetuity, they'd have had a constant of repeat business.
Another unfortunate thing is that the quality of the products was also part of their demise, which is too bad. How many guys here have a silvey older than 10 years? 20? 30? You buy this machine and it lasts indefinitely if taken care of, and it's sad that quality can contribute to your demise... That said, Id still like to get my hands on one.