I recall them getting hacked exposing customer data and website stats, maybe this had something to do with it?

It does seem odd how sextoys.co.uk was sold and the main owner started a new sex shop With A Passion, another one of the directors is now part of Fetch Store and another is the owner of Nexus. Perhaps it was just a relationship breakdown and they went their separate ways, selling the business been the most amicable way to split up.