They weren't really blindsided. They had a pretty bad business model and developed nothing new, ever. They banked on the 430 and 660 keeping them in business forever.
Yet, the lighting market evolved and they didn't. The 430 and 660 ballasts were terrible ballasts for T5s and thus they lost business as people left the VHO behind.
Then, when they finally released a T5 fixture it was a piece of junk. Finally, bring on LEDs and IceCap had no say in that game. They were doomed for failure long ago when they didn't evolve with the hobby. I see a few other companies that are in this category currently and just hope they get their stuff together before they end up like IceCap.