I knew about the video card division but it looks the PSU division (as well as the rest of the company) may be joining them in getting the axe. They sold solid cards and PSU.
"We are being told this morning by sources inside BFG Tech that its 'PSU department' has been let go," HardOCP writes. "I would suggest that if you have a BFG card that needs to be RMA'd, you need to get that done ASAFP. We do not see the company being 'in business' much longer as it is reported that all its remaining inventory has been moved."
Mabey they couldn't get a loan to float them a little while longer. You gotta have money to pay your employees.
If BFG were losing money hand-over-fist before Fermi came out then I'd lament their loss because that is a difficult situation to overcome. Otherwise BFG had a good 6-10 months of notice that Fermi wasn't going to be very good - Nvidia's problems have been common knowledge, early benches and tests were uninspiring and the Radeon 5000 series has proven itself to be a valuable commodity.
BFG could have made the switch if they looked far enough ahead.
Who knows, maybe they did and the lack of Cypress silicon in the first few months meant ATI weren't taking on any new partners.
Either way, it does feel a little like "Nvidia or bust" and they went with the latter - unsubstantiated feeling I'll grant you.