They shut down because they began to SUCK. RS used to be where you went when you needed electronic parts, but then they decided "screw it let's just sell phones". So everytime you walked in they tried to stuff a phone down your throat.....
They got too far away from their core niche model and tried to take on the big dogs. If they would have just stayed the way they were and improved on that it would have gone better for them. I work with an ex-employee of theirs.
Honestly don't you think they were doomed to fail in all reality? They can never carry the selection of products people can buy from big box stores, Amazon, etc. I remember them starting to get all these cheesy crappy toys. I'm surprised they are still around and they don't even try to shove a phone down your throat anymore.