Honestly, I have no clue. People have lots of theories but no solid proof of what happened to them. I imagine their poor coding practices, lack of direction, and the "feature creep" is what ultimately ended the project. That's just my theory though.
It's probably a lack of direction. Much like the original Breeding season and Strumpets, the concept of owning a brothel with a bunch of at will sex scenes is alluring to a lot of people into NSFW content, but the reality of actually making a management game caught up with them.