Geneon and CPM still both technically exist, it's just that Geneon's been reduced to a licensing firm, leaving production and packaging in the hanRAB of other companies (well, other company: Funimation,) and CPM is coasting along on the fact that the deals they cut for titles are so incredibly complete and all inclusive that along as the company is solvent, they own the rights to those titles, and can license them for TV and redistribute them over digital formats. However, it's probably down to just employing John O'Donnell and maybe his wife.
For that matter, Urban Vision may be in the same spot - owns the titles tightly enough that it can survive as label until some kind of rebound happens, and that it's worth it for them to hold on like that because they won't have to relicence them for different formats. i wouldn't know about that for sure though.
And yeah, the market slumped, but what hurt a lot of these folks was the musicland/suncoast implosion because it simultaneously left them with a vastly reduced distribution network (it immediately killed Geneon's CD line for example, as the vast majority of their CD sales were via musicland/suncoast) and also left them with tons of unpaid bills (CPM was particularly damaged as again, musicland/suncoast were a huge piece of their business.) This was before a recession hit and further knocked the legs out from anime sales.