I don't like to see small businesses close but I'm also not exactly surprised. Even after the ownership change they seemed to keep doing the same things they had always been doing. They made an oatmeal (coffee?) stout that was solid, and their dark ale was fine I guess. Nothing else really comes to mind. EDIT: Oh wait, they did a Baltic Porter that was pretty good too, but I only ever saw it once.
With F&M closed, Guelph still has 1 brewery per 26K people (and two of them are Sleeman and Wellington, which are sorta big by this province's standards). Elora is also nearby.
Lack of innovation was a big problem imo, but market saturation didn't help much either. F&M was also located way off in an industrial park that probably had nearly zero walk-through traffic. I think the Guelph (and to a lesser extent, the KWC) area is getting pretty close to the maximum number of breweries it can reasonably support.