Originally Posted by copake_ham
This fact, in itself, says much about how shaky the business was. They were apparently manufacturing to order, which means they lacked sufficient cash flow to build inventory.
Without carrying inventory (including work-in-progress) you cannot meet future orders. So, in fact, are not really marketing your products.
In other words, the buy out investors "milked" the company dry.
You are very right in all aspects.