I believe the talk of FH demise is a bit premature. They have already presented a winter collection, so they believe they could handle the situation.
They need to restructure and hopefully they would convince their creditors about their plan. As with many Japanese companies - what the founder says or does - is the only way that is considered correct, is never questioned and is followed blindly. This has led to the beginning of their demise. Lacking a person with understanding of business at the day-to-day management did not help either.
But the article pinpoints correctly what I found to be an issue with them - too many shops, too many sub brands and too many clothing items. I would add - very late to online commerce, very late with digital marketing and what really gets me is way too many brand logos on their outerwear and tops. Sales outside of Japan would have never been anything of significance.
Last year, I was at their Sendai store and when I opened the door, I felt that I might be their only customer for the week. It felt so desolated. I have rarely seen people at the Daikanyama store. Three times possible. Compared with PJB, Jelado, UES or Warehouse, FH stores always felt empty.
Without FH, amekaji and ametora scene would be really poor and really boring and the attention to the detail from FH and the quality of their products FH is unparalleled. I have never understood the complaint about how their shirts fit - they fit me like a glove, but this is very individual. Last winter Uniqlo and IH had identical ombre flannel shirts and you can see their owner showing the shirt cloth patterns at shirt factories and others (e.g. Jelado) rarely offer anything different so losing Flat Head is like losing the only brave and willing to experiment company on the scene.