This is sad to hear, but honestly not surprising to me. Background for me is I have owned a bunch of Fullerton-made G&L's over the last 30 years, both S and T bodied ones, and they were uniformly superb guitars. Their standard production line stuff is right up there with the best any company offers for a lot less money. But...none of them stuck around for very long for one reason or another (they definitely have their quirks), so I have always ended up back with Fenders, and been overall happier with them. And I suspect there are many that have had the same experience. Just a hunch, yeah, but I think a solid one.
Couple that with their terrible marketing and inability to place the guitars in physical stores for people to play and it becomes a tough sell. They have a good reputation in the deeper guitar nerd world but if the average buyer can't put hands on one to compare with other options they are likely walking out with a Fender, or ordering same on brand recognition alone.