The only thing I can think of is they used refund money from customers to build their cloud mining operation, so the store on broad street manhattan could have the miners in stock, etc. They expected sales to explode and they didnt. They expected profits to soar and it was more costly to have the units made and delivered. They now do not have the cash to refund people and are struggling on that front hoping to mine their way out with gear they cant sell. I could be wrong, but that is the feeling I get. That insolvency is just around the corner.
Yup, that's my take on it too. Not sure about insolvency though. I think they were able to keep many, many machines to use in their mining op. In fact, I can't help but feel the recent spike in hash rate might be their latest round of machines at the new data center they teamed up with.