This sounds like something out of my Econ 1 class at the University back in 1975:
1. Efke's production capacity already exceeds the demand for their products.
2. They are competing in a market with larger producers who have much lower production costs per unit produced.
3. As a result, their profit margin is low.
4. If they raise prices, demand will drop, and demand is already too low. Higher prices will kill them.
5. Finally, they rent the production facility, so there is no incentive for long term investments.
I can't say that I blame them from the point of view of economics….but I'll sure miss the product line. That reduced red sensitivity made for a unique look. Is that simply a function of the dyes used to make silver halides sensitive to longer wavelength light?