I worked for Liberty many years ago and their finances were never the healthiest tbh - it's a very expensive listed building to maintain, and with just the one store there are no economies of scale.
Probably the items in the beauty boxes were supplied free of charge by the manufacturers, but there will still have been a cost in packing and shipping them. They will have been hoping for increased sales over and above the £20/month that we were all paying, but they probably haven't really achieved it. Like PPs have said, both their range of brands, and the product range available within a brand, has been patchy.
But shaky finances is one reason why I've never let my credit build up too high - if they do go under, you'll most likely lose it all.