AMD did not allow BFG to sell ATI cards

PC Perspective has some more details about the demise of BFG. The site heard NVIDIA didn't supply BFG with any Fermi GPUs, and that Best Buy, one of BFG's biggest customers, dropped the company like a rock because they were no longer able to produce significant amounts of graphics cards. Interestingly, a Chinese reader told PC Perspective that BFG tried to launch a line of ATI Radeon HD based graphics cards, but that this plan was torpedoed by AMD:

A Chinese reader who is closely associated with a manufacturing company in China sent a couple interesting pictures as well as a short description of the business agreement that BFG had pursued with this company. Apparently this manufacturer would procure the parts, assemble the cards, package and ship the products under BFG’s name. BFG would have little to do with the business other than producing the specifications of the cards and marketing the final products. Several models of the cards were designed, components were bought, and cards started to be manufactured.

A goodly amount of AMD graphics chips were procured, and this of course raised the interest of AMD. When AMD inquired about who these chips were for, the manufacturer told them that it was for BFG. AMD responded that BFG was not an authorized partner, and they would not be allowed to sell AMD based graphics boards. This of course panicked the manufacturer, as they made a sizeable purchase up front to procure the necessary components for the video cards.

You can read all the juicy details over here.