My speculation is that the former owner(s) expected money to flow in without any investment on their part. COVID disruption lingers when you're trying to run just on profit from sales - particularly when sales are dependant on parts you can't get without some upfront investment. I haven't heard any of this from insiders, just reading between the lines of what competitors say.
Investors actually wanting to run a business understand investment, as this group's letter clearly shows. A lot of good people at HM, they'll be fine.
If I remember correctly reading you guys beta-tested a X-drive, how did that work out? I've seen one going for cheap..