I'm not a member of the Hoffman forums so I'll post here what I'd like to say over there:
Hold your horses, people! The information posted at the start of that thread refers to the individual Rick Flynn. NOT the business, Red Trumpet, LTD.
The further fact that the website continues to process orders indicates to me that the company is still in business. As has been noted, Chapter 11 is the kind that precedes a reorganization, a new business plan, and another chance. Chapter 7 calls for liquidation of assets to pay off creditors.
Now, it might make sense to keep the website operational for orders, but only if the orders are limited to what is on hand, i.e., a court-ordered attempt to sell, at near-full price, on hand stock in order to maximize funds available to creditors.
Does this mean that I'm about to order something? Hell no! But I do think people are making assumptions based on facts not yet in evidence.