This is just speculation, but it seems Mongoose was suffering significant costs in "quality control" issues; broken and destroyed molds that needed replacing, and based on the amount of flashing and misaligned models received by players, lost product through even lower quality and irrecoverable models.
Personally, I’ve always wondered why 3D Printing or its various iterations isn’t more popular in the modeling industry. Certainly, it costs more to start up, but in theory the advantages weigh out: Because you create digital “CAD” models that the 3D Printer creates, and with the right printer, the accuracy of these Printers is extremely high, you have the advantage of consistent, high quality models for a relatively low cost, and you never have to worry about breaking molds and having to "remold" and "recreate" models as you have the digital copy. Even if you just used the Printer to make molds, and then used the molds for model mass production, think that’d reduce costs because (unless you did something dumb like delete the electronic “blueprint” or fail to back it up) you’d always have the ability to produce new molds with the 3D Printer. Still, they're not being widely adopted, so I'm sure there's a reason...