Let me preface the answer by saying this is my opinion only.
Like all businesses, if the revenues can't support the business, the doors get closed. By keeping just about all the manufacturing in house, it was a very expensive way to build a gun. Not only do you have the cost of machinery but also the cost of the people to run them. Also had the cost of the people to to do the final polishing, fitting and assembly. Add to that the cost and upkeep of the building. For those that visited the factory, this was a big building. And by the way, taxes in CT were among the highest in the country.
On the flip side, the SA market is not a big market. The Rodeo was was an attempt to capture a larger percentage of that market at the expense of a profit/unit. At one time there was talk of discontinuing the Rodeo. The cost to build the Rodeo was about the same as a Single Action less the cost of the TB color case (which wasn't that much - 2 figures). IMO, every Rodeo that shipped cost the company money. Other models were introduced (Bisley, Snub, etc) with much higher dealer prices but the run was so small they had no impact on the bottom line.