For me there were always red flags, they tried too hard to chase the dragon after the unexpected success of TWD, all of the sudden they were churning out 2-3 titles a year (17 individual episodes were released in 2017 alone) with an aging engine. They were constantly missing out release dates for episodes and unable to update their games for new experiences.
Also do not forget that licences for these properties are very expensive to procure making it even more difficult to break even.
They also added an Exec from Zynga as their CEO in 2017, which for me represent the very worst gaming has to offer in terms of low effort, exploitable gaming.
This was the final nail in the coffin, unsustainable business practices with high level execs who only care about the bottom line always breeds failure.
Its a shame, a lot of people knew the end was coming but management kept quiet until they literally had to close up shop and gave people a few hours to leave the building. All the workers there deserve better.