Txtr (the company) are actually not doing all that well; they're also losing a lot of customers to Bluefire. I've heard from my contact with Bluefire, Micah, that Bluefire have so many ebookstores who want to hire Bluefire to make an app that he can't even respond to all the emails.
And if you're wondering how a 50+ person company is being beaten by a 6 person team then I suggest you download both apps on to your iPhone. Try them and ask yourself which one is better.
Here's a video of what the txtr reader looked like before it died: