It's hard to know. My ignorant guess based off the recent hiring was that they were a really small studio focused on exploring VR concepts, and only now were moving in to production.
I'd bet the shutdown was related to scaling up the studio, not past performance.
Thank you for all of the support you’ve shown us, thank you especially to the studios who have already reached out to us and met with us. The games industry is a special place, and we’re still so proud to be a part of it <3 pic.twitter.com/ao81PiVpkG
— Rachael Gregg-Smythe (@rae_ami) February 5, 2020