Maybe that was the problem there?
Basically just saying that some combination of floor space, rent and other fixed costs, etc etc led to pursuing a higher-end business model and it didn't work out. There may be lots of reasons for that, but one of the principles here is that you need to be able to bike to your bike store— it's not fulfilling its purpose if it's in a power center plaza that you need to drive to.
I know someone who operated a Velofix van for a few years, and I used it a few times, but the minimum cost was basically $100+. For that much coin, I would just walk my bike home or take it on the bus. Particularly if it was something like a flat tire where I know I can fix it myself at home for a few dollars.
Cheap bicycles plus good mid-priced service is where it's at. Of course, that's hard, dirty, skilled work.
[1]: https://twitter.com/berlinbikecafe