I have posted this when they announced that they will stop operating. Based on their own statement;
Why is localbitcoins terminating the service?
Localbitcoins trading volumes have been declining for a long time, and there is no big enough market demand for our services anymore.
I believe this is the main culprit as well. Because had they been getting a good flow of trading volume, it's likely they'll be able to hold out during the crypto winter like other companies.
It is not only LocalBitcoins, there are some P2P platforms closed their services too like Paxful, 2 months after LocalBitcoins.
Paxful is shutting downYou must have missed that paxful came back! try accessing the website again:D