Reason they are shutting down?
There are various reasons. H&K and Walther are dominating the European Law Enforcement market and the Sporting Arms market is drying up from government regs. They got in a law suit with the German government over exporting banned arms to South America and running the paper work through their American branch. This put restrictions on Government Contracts.
Also it is reported their bad business habits and over pricing has doomed them.
They are thriving here in the U.S. though it seems.