Basically they write that the were intimidated and one of the workers was beaten up, there were loads of bad words, emails and calls with threats. Somebody was not happy that something like Bitcoin Embassy was working. The creators of that embassy got scared and decided to back off and close the place.
I don't think that it is the whole picture here. I doubt that in civilized country you will end your economic and social activity after just after incident like that.
That Bitcoin Embassy is trying to cover something deeper probably.