Rob Boyle, a former editor for FASA, expounded on the reasons for this in an RPGnet forum post in 2010...
The second was FanPro Germany. While separate companies, both FanPros essentially had the same owners. FanPro Germany was doing poorly financially, and so they propped themselves up by taking large amounts of stock from FanPro US for which they never paid. (FanPro US had taken over FASA's backstock too.) The owner also made some business decisions and deals that were good for FanPro Germany but damaging to FanPro US.
FanPro US might have recovered from the FFE debacle if FanPro Germany hadn't dragged it down. Combined, however, they effectively did the company in. Eventually, the staff at FanPro made an attempt to buy the company out, but the owner refused. So we all quit and went to Catalyst, which picked up the SR and BT licenses.
Having now worked with FASA, FanPro, and Catalyst, and also having dealt with Fast Forward and WizKids, I could write a book about the slimy, unethical, and bullshit business practices of certain business owners in this industry. I can point to certain people and point out specific decisions they have made that benefited their companies financially while screwing over the hardworking freelancers that produced the games they profited from."
Boyle wouldn't be the only one to speak out about business practices, something I'll be going into in depth in the final post in this series...