This does not surprise me. I worked for one of the catalogs listed. The company/catalog was sold to Amerimark in 2019 and business was relocated to Ohio. (As a result we lost our jobs). The transition was not smooth from what I was told.
Prior to the sale, the company was not doing well. Multiple port strikes, factory shutdowns overseas and legislation impacting imported goods significantly altered the ability to obtain goods and the cost of imports. Companies were in bidding wars for cargo space and smaller companies were typically outbid and left without inventory. Catalogs are printed many months ahead of time. If an item is listed in a catalog, but then isn't available, (backordered), people cancel orders and revenue is lost. Then along came the pandemic which exacerbated the problems.
I do hope they can recover from the bankruptcy, but they may not survive.