From what I understand, the closing of the NY Workshop was an agonizing decision on the part of the company. It was not something they wanted to do, but the economy and other hard-time finances forced them to do it. Since Bloomberg took over office in NY, rent has gone through the roof, property taxes as well. It wasn't a decision made lightly. The Workshop was moved to the basement (if memory serves) of the Central Park east office building, though, and much of the staff is still on some sort of "return to work" retainer should new projects come up.
Any changes to the NY facilities are weighed pretty heavily. Heck, when Amy and I visited the building last year, Jim's office was kept exactly the way he'd had it before he died, right down to the placement of papers and pens on his desk. (It was also a little eerie. We walked in and it felt like *someone* had just left...)
Rivkin is trying to run it like a corporation *without* running it like a corporation. He's trying to keep the business alive. He was good friends with the family, I'm told, and has a personal love for the characters and heritage. But it's hard, I can imagine, to keep a legacy afloat when the way companies do business has reverted back to pre-Industrial attitudes.
Mike Watt
www.hollywoodisburning.com