Sad. From their letter:
We are terribly sorry that things worked out this way. As much as it hurts to lose our business, the feeling of letting down our authors is even worse. We have always loved the close relationship we share with our authors and have prided ourselves on having them much more involved throughout the publication process than they would be at many other presses. We are doing our best to make sure that they come out of this as unscathed as possible. For those authors whose books have not yet been published, we are working on placing their titles with other houses.