I can't say I'm surprised. Victory never captured enough of the market to be really successful. Pull into any bike night or rally and count the Victory's there and you can see they never really made much of a dent. There are only so many riders out there looking for big twin cruisers and if said buyer decides he wants an American bike, why wouldn't they go to the OG American bike rather than a resurrected brand that has been around less than 20yrs. In a sector where refinement is the key rather than innovation, I think it really hurt them that they continually discontinued models and brought out new ones. You find one you like and then 2yrs later they don't make it any more.
I think the cruiser market in general is in trouble. You look at how many different models of cruisers the various Japanese manufacturers had back in the early 2000's vs today and you can see it. Some of that can be blamed on the shrinking economy, but I think a great deal of it is due to changing rider preferences. At one time Honda had 4 different versions of it's 1800cc VTX, 3 different 1300 VTX, and 2 or 3 750 Shadows. Now they have eliminated the 1800's all together and have 2 1300's and 2 750's. Yamaha has dumped a few of their cruisers, Kawasaki has dumped a few too.