Wow, yes it's a long and sordid story. A lot of what we know is second and third hand anecdotal type stuff. But assuming it's accurate, the company that owned the faire did some pretty evil stuff. It was owned by REC (Renaissance Entertainment Corp).
Here's the story, as we heard it.
REC owned something like 4 other faires, but this was the first one they started from scratch. All of the others they had bought previously. When a faire starts up, usually it takes about 10 years for them to get into the black. With the economy going into a bit of a recession (around the time of the internet bubble burst), and weather-related damage having been done to some of the other faire sites, not to mention weather related attendance drops, they had some financial problems.
So supposedly, what they decided to do was cut VARF loose, even though it was just becoming profitable in half the time that a renfaire typically needs. They did this to financially bolster the other faires that were having the financial problems.
But here's the part that generated all the bad blood. All year long, they were assuring everyone that the faire was going to open as planned. They didn't drop the bombshell until about 2 months before the opening date. Throughout the year, they had been allowing the vendors to do expensive repairs and upgrades to their booths, some on the order of $20,000 or thereabouts. These merchants had to eat that as a loss.
A lot of the merchants won't talk about it, and I suspect there was more to the story.
All of this should be taken with a grain of salt, since it's all "through the grapevine" details.
But yes, we liked it a lot when it was open. It had great ambiance, a nice site, and a pretty good size.
The new VARF attempted to rent the same land. The land was being held by a company that was in chapter-11, and they negotiated in bad-faith, attempting to use/abuse the faire to clean up the land and prepare it for development for them (which chapter-11 of course was preventing them from doing). So the new VARF walked away, and the old site has continued to rot.