Kind of a reach to blame the economy isn't it? Without knowing business practices and decisions made which to me would probably have a lot more to do with wheter or not they stayed afloat. Maybe it was milked for all it was worth and is now being torched, leaving the creditors in the lurch? That sure smells more likely at this point since the ownership seems to have dissappeared...
I'm sure that the economy had something to do with it. It's hit a lot of businesses hard enough that they never recovered.
I'm sure that Pat was extremely proud of the setup he had there. The woodworking tools looked state of the art. He had his lab, a design philosophy that worked really well, employees... It was probably a large part of his life, and where he spent much of his time.
When something like that starts getting marginal, then running in the red and behind on payments and such, it hits hard.
Yes, it looks bad from the outside, and perhaps he could have handled it better, but a lot of people tank when their businesses tank.
You have to feel sorry for the guy. Here he was producing speakers that sounded good and looked like fine furniture, and that wasn't enough to keep the business afloat. And at the same time, companies like Bose and Polk are selling crap and making tons of money.