Just my 2 cents on this, as you all know i'm on Sufu from time to time... I could probably talk about this for pages but i'll keep it brief, as much for my sake as yours.
kicks79 is right on a couple of points here, the retail scene is definitely feeling it right now, and it's essentially like you need to be on sale more or less permanently just to be able to have any chance of just even staying afloat, let alone thrive - and that's no way to be. Combine a premium product that has wholesale prices that seemingly increase season after season, with a consumer that consistently wants things cheaper & cheaper and there'll be problems sooner rather than later. Add in the fact that the denim scene is still somewhat of a niche market over here and things get tricky. We would have loved to have brought more from our brands, and even more brands, but it's easier to move a $275 pair of jeans than it is a $275 Japanese flannel shirt... if you see what i mean.
In terms of GSD we could have kept going and stuck it out longer, but surveying the landscape we had to question whether that would actually be the right call, after all we both have families to look after and contribute to. It is disappointing not to be able to continue doing what we we're doing, but the conditions need to be right in order for that to happen, and after having spoken to our customers (both new & old) during the last 4 days worth of closing sales we feel we made the right call.